Formula Systems says NIS 80.5 million debentures converted so far

By Angela McDaniels

Tacoma, Wash., March 12 – Formula Systems (1985) Ltd. reported that NIS 80.5 million principal amount, or 64.4%, of its series B convertible debentures due March 26, 2019 were converted into ordinary shares in 2018 and in 2019 through Sunday.

The debentures were converted into 545,485 ordinary shares, constituting 3.57% of Formula’s issued and outstanding share capital following those conversions, according to a 6-K filing with the Securities and Exchange Commission.

The company issued NIS 125 million of the convertibles in September 2015.

The principal amount of the convertibles is linked to the dollar and bears interest at a fixed annual rate of 2.74%. Interest is payable in one payment upon maturity, at which time the accrued interest will constitute 10% of the principal amount of the outstanding convertibles.

The total amount due for payment by Formula at maturity, including accumulated interest, is about $12.5 million.

The adjusted conversion rate for the convertibles is NIS 147.54 per ordinary share.

Formula Systems (1985) is an information technology company based in Or-Yehuda, Israel.

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