Southern Properties Capital, Wholly Owned Subsidiary of Transcontinental Realty Investors, Achieves a Series C Issuance on the Israeli Bond Market

Southern Properties Capital (SPC) a subsidiary of Transcontinental Realty Investors Inc., (NYSE: TCI) and Abode Properties, both Dallas-based real estate investment companies, announces an expanded bond offering in the Israeli market. The company raised an additional $78 million bond series C on the Tel Aviv Stock Exchange. As previously reported, TCI was the first Dallas-based firm to raise capital on the Israeli bond market with its Series A and B bonds. Prior to the Southern Properties Capital issuance, the market was previously dominated by Manhattan based companies, but has once again shown increased demand for additional bond issuers throughout the United States.

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SPC, TCI, Abode Properties, and Radhan complete successful Series C Bond in Israel (Photo: Business Wire)

The company’s Series A and B bonds raised over 610 million shekels, approximately $174 million. “This series C offering was for an additional 275 million shekels, over $78 million,” said Daniel J. Moos, CEO and President. “We are always evaluating various alternatives to grow our asset base while continuing to enhance value for our investors. This expanded offering creates additional financial strength to our already thriving organization. With our existing and newly engaged projects and our continuously burgeoning multifamily asset base, we are continuing to prove ourselves as a formidable player in the U.S. real estate market.”

Daniel J. Moos continued, “It is very gratifying that the offering was significantly over the $75 million subscription we were allowed to raise for this series. In addition, for various reasons the interest rate paid on this series C was significantly less than what was paid on our previous series. This series also reflects a AAA- S&P rating in comparison to the BBB+ rating associated with the prior series A and B.”

The deal was led by Yuval Barak and Eden Ozeri from Radhan - a leading financial consultancy firm out of Israel that continues to advise the company in the Israeli market. According to Eden Ozeri, “In a challenging time for US issuers, the tremendous success of the series C issuance is a vote of confidence in Southern Properties Capital. It is an unprecedented transaction in this period and proof that solid companies with proven attention to the local market continue to succeed.”