Aya New York Repays Bondholders in Full and Exits Tel Aviv Exchange
Aya New York is repaying its bondholders in full and leaving the Tel Aviv Stock Exchange via a $104 million Citibank refinancing, exiting three years early amid market scrutiny.
Aya New York, a BVI-registered real estate firm controlled by Israeli-American businessman Amir Shriki, is repaying its bondholders in full and exiting the Tel Aviv Stock Exchange three years ahead of schedule. The company secured a $104 million refinancing package from Citibank, utilizing the proceeds to transfer $94 million for the early redemption of its local bond series.
The transaction takes place just nine months after the initial public offering and well ahead of the December 2029 maturity date. Under the new arrangement with Citibank, the company will pledge the same two Manhattan residential properties previously secured for Israeli bondholders as collateral, at an annual interest rate of 6.25%, compared to the 7.7% coupon paid to bondholders.
Aya New York attributes the early departure to a shifting market landscape and hostile sentiment toward BVI-registered firms following recent corporate governance scandals in the local market. Shriki noted that tightening conditions for foreign issuers prompted the proactive exit. However, market sources suggest the early repayment was driven by mounting pressure from concerned bondholders following operational discrepancies and governance concerns.
The company's short tenure in Tel Aviv was marked by skepticism from institutional investors, leading to repeated revisions of its offering terms earlier in the year before raising 292 million shekels. Recent developments, including legal disputes over underwriting fees and unauthorized encumbrances on pledged revenues, accelerated friction between management and investors, culminating in the appointment of legal representatives and the subsequent early buyout.
