By Angela McDaniels
Seattle, Nov. 30 - Makhteshim Agan Industries Ltd. issued $550 million of new Israel shekel-denominated bonds in three series, according to a company news release.
The series A bond issuance totaled the equivalent of $385 million. The notes carry a base interest rate of 5.15%, are linked to the Consumer Price Index and the principal amount is amount repayable in seventeen equal installments during the years 2020 to 2036.
The series B bond issuance totaled the equivalent of $110 million. The notes carry a base interest rate of 4.45%, are linked to the Consumer Price Index and the principal amount is amount repayable in four equal installments during the 2010 to 2013.
The series C bond issuance totaled the equivalent of $55 million. The notes carry a base interest rate of 6.5%, are linked to the new Israeli shekel and the principle amount is repayable in six equal installments during the years 2011 to 2016.
Makhteshim Agan said it plans to list the bonds and until it does so, the interest rate on each series of bonds will increase by 25 basis points annually.
The company said the purpose of the issuance is to replace some of its short-term domestic bank credit with long-term bonds.
"This issuance is an important step toward diversifying our funding sources," chief financial officer Ran Maidan said in the release.
"The bonds were rated AA by Maalot, S&P's Israeli affiliate, and were issued to domestic institutions and other investors, benefiting from current interest rate levels."
Makhteshim Agan manufactures and distributes crop protection products and is based in Tel Aviv, Israel.
| Issuer: | Makhteshim Agan Industries Ltd.
|
| Issue: | Bonds
|
| Amount: | $550 million equivalent
|
| Rating: | Maalot: AA
|
| Announcement date: | Nov. 30
|
|
|
| Series A bonds
|
| Amount: | $385 million equivalent
|
| Base coupon: | 5.15%, linked to the Consumer Price Index
|
| Maturity: | 2036
|
|
|
| Series B bonds
|
| Amount: | $110 million equivalent
|
| Base coupon: | 4.45%, linked to the Consumer Price Index
|
| Maturity: | 2013
|
|
|
| Series C bonds
|
| Amount: | $55 million equivalent
|
| Base coupon: | 6.5%, linked to the new Israel shekel
|
| Maturity: | 2016
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
