Israel's Internet Gold sets size of add-on at NIS 155 million

By Angela McDaniels

Tacoma, Wash., Aug. 8 - Internet Gold - Golden Lines Ltd. will issue up to NIS 155 million of additional 4.45% series C debentures linked to the Israeli Consumer Price Index and will determine the price of the debentures through a public tender on Wednesday.

There is a NIS 23.25 million over-allotment option.

The company issued NIS 170.33 million of the debentures in September 2010 and an additional NIS 130 million in February. In July, it announced plans to issue up to NIS 200 million of additional debentures. The size of the add-on and the greenshoe were announced in a press release on Monday.

On Thursday, the company accepted early commitments from institutional investors for NIS 121.51 million of the debentures. These investors will receive an early commitment fee of 0.6%.

The offering price set in the institutional tender stage was NIS 1.005 per debenture, which is the minimum price for the public tender.

The terms of the reopened debentures will be identical to the terms of those issued in September 2010. The debentures will be payable in four equal annual installments on March 10 of each of the years 2016 through 2019.

The debentures are being offered in Israel only and will not be registered under the U.S. Securities Act.

Midroog Ltd., an Israeli rating company affiliated with Moody's, assigned a local A3 stable rating to the planned debentures on July 18.

Internet Gold is a telephone and internet service provider based in Ramat Gan, Israel.

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