Israel Chemicals plans up to NIS 2 billion of debentures due 2024

New York, March 31 – Israel Chemicals Ltd. said its board of directors has approved a public offering in Israel of up to NIS 2 billion of series E debentures.

The company filed a trust deed on Thursday for the securities, according to a 6-K filing with the Securities and Exchange Commission.

The debentures will be offered at par and will mature on March 30, 2024. Starting in 2021, 25% of the principal amount will amortize each year.

A public tender process will be used to set the interest rate.

For each rating decline of one notch below ilA the interest rate will step up by 25 basis points up to a maximum of an additional 100 bps.

Financial covenants will require minimum equity of at least $1.55 billion and a net debt to EBITDA ratio of no more than 1:5.5.

The company needs approval of the Tel Aviv Stock Exchange before the offering can go ahead.

Israel Chemicals is a fertilizer and specialty chemicals company based in Tel Aviv.

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