Israel is Concerned

The Israeli bond market is concerned about Extell and Related

The virus has brought construction and sales to a near halt. Extell’s bonds are now trading at about 76 cents on the dollar, down nearly 25 percent from the start of the year. That is even worse than the 16 percent decline of the Tel Bond Global index — which tracks foreign bond issuers, including many New York-based real estate firms — over the same period.

Related ran into some bad timing as the company seeks to refinance maturing bonds amid economic upheaval. “As everyone is aware, we are in the midst of an unprecedented global health crisis, the timing of which is unfortunate with respect to our bonds,” said Related general counsel Richard O’Toole, who serves as the CEO of RCP, in his opening remarks. “Despite this, today we will highlight the strength of our portfolio and our plans to ensure the bonds are repaid.” The bond issuer faces a $207 million payment on Sep. 30 when its Series A bonds mature.

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