Israel’s B Communications to buy back more 7 3/8% notes via share sale

By Tali Rackner

Norfolk, Va., Feb. 8 – B Communications Ltd. said it plans to use the proceeds from its sale of 115.5 million Bezeq shares to purchase some of its 7 3/8% senior secured notes, according to a press release.

Under the terms of the notes, the proceeds were deposited in a "lockbox account." The company must make an offer to the noteholders within 365 days of receipt of the proceeds to purchase the maximum principal amount of notes that may be purchased with the proceeds at a cash offer price equal to at least par plus accrued interest to the date of purchase.

"We currently intend to make our disposition offer at some point over the near few months, in line with the requirements of the indenture, although no final decision as to timing or pricing has been made,” CEO Doron Turgeman said in the release.

“Given that we believe that our notes trade at a significant premium to par, we are evaluating our options and are considering the possibility of using some of our additional available cash to increase the offer price to a price more in line with the current market and trading conditions.

“In the interim period, the proceeds from the sale of the Bezeq shares will be invested in investment grade debt instruments, as permitted under the term of the indenture."

B Communications is a Ramat Gan, Israel-based telecommunications-oriented holding company.

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