Israel’s Optibase plans to offer up to NIS 60 million series A bonds

By Susanna Moon

Chicago, Aug. 3 – Optibase Ltd. plans to offer up to NIS 60 million principal amount of non-convertible series A bonds due Dec. 31, 2021, according to a 6-K filing with the Securities and Exchange Commission.

The bonds will be offered to the public in Israel in a public tender with a coupon of up to 7%.

Under the bond terms, the company may not make any distributions of more than 35% of its profits nor make distributions that immediately following which the company’s equity will drop below $50 million.

The financial covenants also require

• The minimum equity (excluding minority interest) of the company to be at least $33 million;

• The company’s equity (including minority interest) to balance sheet ratio to be at least 25%;

• The net financial debt to CAP ratio will not be greater than 70%; and

• The net financial debt to EBITDA ratio will not be greater than 16.

Midroog Ltd., an affiliate of Moody’s, assigned a rating of Baa1/stable on a local scale.

Based in Herzliya, Israel, Optibase invests in real estate. The company previously operated in the field of digital video technologies.

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