Aya New York Exits Tel Aviv Market with Full Bond Redemption
Israeli entrepreneur Amir Shariki's firm Aya New York is executing a full early bond redemption at 100% par value, exiting the Tel Aviv market after eight months.
Israeli entrepreneur Amir Shariki is exiting the Tel Aviv capital market just eight months after his real estate firm, Aya New York, raised NIS 292 million through a bond offering in February. The company announced a full early redemption of the bonds at 100% par value, despite the bonds trading at around 80-86 agorot. The move follows a tense dispute with institutional holders including Yelin Lapid and Meitav, alongside bond trustee Mishmeret, triggered by disclosures in the second-quarter financial reports.
The Dispute and Early Exit
According to the financial statements, subsidiaries of Aya—some with assets pledged to bondholders—entered into agreements involving future revenue pledges. Although Shariki and his legal team corrected the issue within 48 hours after being flagged by counsel, bondholders holding 45% of the debt appointed legal representation to challenge the firm. Rather than engaging in a protracted legal battle, Shariki opted to close the chapter entirely.
"I met with the major holders, Yelin Lapid and Meitav, and the bond trustee, and decided to execute an early redemption at full par value (100%) even though the bonds trade at 86 agorot," Shariki said in an interview with Calcalist.
Manhattan Portfolio and Refinancing
Aya New York holds five properties, all located in Manhattan, with two of them pledged as collateral for the bond series, valued at $137 million. To finance the early payout, Shariki secured a $100 million financing package from a major international bank in the United States at an interest rate below 7.7%, supplemented by mezzanine loans and a modest equity injection.
Reflecting on his brief foray into the Israeli public market, Shariki noted that American BVI firms face an uphill battle in Israel due to eroded investor trust following previous market failures. He concluded that navigating the local regulatory and investor landscape demanded excessive resources, prompting his swift return to private financing channels.
