By Susanna Moon
Chicago, Sept. 16 – Formula Systems (1985) Ltd. issued NIS 227.26 million of debentures in two tranches on Wednesday, according to a 6-K filing with the Securities and Exchange Commission.
Formula Systems sold NIS 102.26 million par value of 2.8% secured debentures at par of NIS 1,000, with interest payable semiannually, according to a company notice.
The company also issued NIS 125 million par value of 2.74% convertible debentures at a price of NIS 1,020 per NIS 1,000 debenture unit, with interest payable in one payment at maturity, at which time the accrued interest will constitute 10% of the principal amount of the convertibles.
The 2.74% notes are convertible into the company’s ordinary shares at a rate of NIS 157 par value of convertibles per share.
The company said it published with the Israeli Securities Authority and the Tel Aviv Stock Exchange a shelf offering on Sept. 10 for two series of debentures that it offered in Israel.
Under the Israeli securities law and regulations, the offering occurred in a two stage bidding process in which institutional investors and public investors submitted bids for the most favorable terms that they were willing to provide to the company, the company said.
The new issue is based on the results of both sets of bids.
Proceeds will be used for general corporate purposes, which may include refinancing outstanding debt, financing its operating and investment activities, financing further investments in its subsidiaries or affiliate company or future acquisitions, and dividend distributions.
The pubic offering of the debentures was made only in Israel and not to U.S. persons.
The information technology company is based in Or-Yehuda, Israel.
| Issuer: | Formula Systems (1985) Ltd.
|
| Amount: | NIS 227.26 million
|
| Pricing date: | Sept. 16
|
|
|
| Debentures
|
| Issue: | Secured debentures
|
| Amount: | NIS 102.26 million
|
| Coupon: | 2.8%
|
| Price: | Par
|
|
|
| Convertible debentures
|
| Issue: | Convertible debentures
|
| Amount: | NIS 125 million
|
| Coupon: | 2.74%
|
| Price: | 102
|
| Conversion rate: | NIS 157 par value of convertibles per share
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
