By Susanna Moon
Chicago, April 27 - Israel Chemicals Ltd. said it completed a private placement of NIS 695 million of its debentures to institutional investors in three tranches.
The debentures are rated AA+ by Standard & Poor's Maalot.
The company said demand for the bonds was NIS 1.5 billion in subscriptions, representing three times the size of the offering. As a result of the excess demand, the company decided to increase the size of the offering beyond the original amount of NIS 500 million.
The first tranche is for NIS 182 million 41/2-year debentures linked to the dollar. The second tranche is for NIS 452 million five-year debentures tied to the Consumer Price Index. The third tranche is for NIS 61 million in nominal NIS redeemable at the end of 4½ years.
The company said it intends to register the debentures for trading on the Tel Aviv Stock Exchange.
After registration, the dollar-linked tranche will bear variable interest at six-month Libor plus 240 basis points, the CPI-linked tranche will have a coupon at 3.4% and the nominal NIS tranche will have a fixed coupon of 5¼%. Until registration, all debentures will bear additional interest of 0.5%.
Proceeds will be used for future needs, including potential mergers and acquisitions.
The placement was led by Poalim IBI, Leumi Partners and Apex Underwriting.
The company, based in Tel Aviv, is a multinational fertilizer and specialty chemicals company.
| Issuer: | Israel Chemicals Ltd.
|
| Issue: | Debentures
|
| Total amount: | NIS 695 million
|
| Underwriters: | Poalim IBI, Leumi Partners and Apex Underwriting
|
| Settlement date: | April 27
|
| Rating: | Standard & Poor's Maalot: AA+
|
|
|
| First tranche
|
| Issue: | Dollar-linked debentures
|
| Amount: | NIS 182 million
|
| Maturity: | 4½ years
|
| Coupon: | Six-month Libor plus 240 bps
|
| Price: | Par
|
| Yield: | Six-month Libor plus 240 bps
|
|
|
| Second tranche
|
| Issue: | CPI-linked debentures
|
| Amount: | NIS 452 million
|
| Maturity: | 5 years
|
| Coupon: | 3.4%
|
| Price: | Par
|
| Yield: | 3.4%
|
|
|
| Third tranche
|
| Issue: | NIS-linked debentures
|
| Amount: | NIS 61 million
|
| Maturity: | 4½ years
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
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