JERUSALEM, April 29 Israeli real estate firm
Property & Building said on Sunday it was in
preliminary talks to refinance its borrowing on the HSBC Tower
building in New York in the amount of $350-$400 million.
Property & Building is negotiating with several foreign
banks, it said in a statement to the Tel Aviv Stock Exchange.
The current financing on the Fifth Avenue building is about $240
million and the company believes a new agreement will generate
cash flow of $100-$150 million.
Property & Building, a subsidiary of holding company IDB
Group, also said it would post first-quarter net
profit of 150 million to 190 million shekels ($40-$50.5
million), up from 22 million shekels a year earlier.
The company said it was considering a bond offering of up to
400 million shekels that would expand its series 3 and 4 bonds.
Any issue is subject to its board's approval, it said.
Should an offering take place, Standard & Poor's Israel
division Maalot said it would rate the bonds "A" with a negative
outlook, while Moody's Israel affiliate Midroog said it would
rate them "A1 stable".
Property & Building's shares were up 2.8 percent in
afternoon trading in Tel Aviv. Its bond prices
were down as much as 2.3 percent.
($1 = 3.76 shekels)
(Reporting by Steven Scheer; Editing by Sophie Walker)