High demand for US co Waterstone Properties TASE bond

Waterstone hopes to complete a NIS 450 million bond issue in the coming days.

With the public hungry for high interest rates, local investors are running after US real estate companies issuing bonds on the Tel Aviv Stock Exchange (TASE) with higher yields than those offered by Israeli companies with the same rating. A new US company, Waterstone Properties, jumped on the bandwagon yesterday. Waterstone has already secured NIS 385 million in the institutional stage of its first TASE bond issue (Series A).

Waterstone offered investors unlinked shekel bonds with interest of up to 7%, not counting a 0.6% early commitment discount for participants at the preliminary stage of the issue that will increase the yield still further for these investors. Investors were attracted by the high interest rate, resulting in NIS 650 million in demand and a maximum interest rate of only 5.7% in the tender for institutions.

According to Leader Underwriters CEO Ranen Cohen Orgad, which led the issue, tier-1 investment institutions also took part in the institutional stage, including insurance companies and provident and mutual funds. Owned by Neal Shalom, Josh Levy, and Anton Melchionda, Waterstone Properties deals in income-producing commercial real estate, and operates from New England.

Waterstone's portfolio contains 49 income-producing properties spread over 12 different states. The average duration of the bonds, to which S&P Maalot has assigned an A rating, is 4.5 years. According to the underwriter, Waterstone will try to complete a NIS 450 million bond issue in the public part of the tender, which will take place in the coming days.

Cohen Orgad emphasized, "The Israeli capital market continues to improve and diversify its credit portfolio with worthwhile foreign companies having a proven business model, experienced management, and a good reputation. We are delighted with the warm reception that has greeted Waterstone, and are convinced that the company will prove in the future that it is worthy of the trust it has received."

Published by Globes [online], Israel Business News - www.globes-online.com - on May 25, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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