Bloomberg News

Delek Real Estate Climbs to Highest in Month After Bond Deal

October 06, 2011

(Updates with closing prices starting in second paragraph.)

Oct. 6 (Bloomberg) -- Delek Real Estate Ltd. closed at the highest in a month after bondholders agreed to the delay of a principal payment and accepted a deal with controlling shareholder Isaac Tshuva.

Delek Real Estate, which yesterday said it completed the sale of two Canadian assets, rose 4.9 percent to 0.171 shekel, the highest since Sept. 8, at the 4:30 p.m. close in Tel Aviv. The shares surged 17 percent in the past two days.

The Ramat Gan, Israel-based company has been in negotiations with bondholders over its debt and has been selling off Canadian and other assets. In August, Tshuva agreed to give an international investment fund his stake for a 500 million- shekel ($135 million) investment in the company.

The bondholders agreed to delay the payment of their principal until Jan. 31, the company said in a statement to the Tel Aviv Stock Exchange. Delek has a long-term debt-to-capital ratio of 81 percent, according to Bloomberg data. Ninety-eight percent of the companies on the TA-100 index show a better ratio.

--Editors: Claudia Maedler, Peter Branton

To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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