June 10, 2012 / 9:43 AM / 6 years ago

Property & Building in deal to refinance HSBC Tower

JERUSALEM (Reuters) - Israeli real estate firm Property & Building (PTBL.TA) said on Sunday it signed a non-binding term sheet with a foreign bank to refinance its borrowing on the HSBC Tower building in New York in the amount of $400 million over 10 years.

Property & Building plans to forge a new financing deal by the end of June, it said in a statement.

The current financing on the Fifth Avenue building is about $240 million.

In April, the company said it was in talks with several foreign banks to refinance its loan on the HSBC Tower. It said at the time that a new agreement would generate cash flow of $100-$150 million.

Property & Building is a subsidiary of holding company IDB IDBH.TA.

Its shares were up 1.1 percent at midday in Tel Aviv, while its bond prices were up 0.9 percent.

Reporting by Steven Scheer

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