Partner Communications plans NIS 360 million placement of up to two series of notes

By Jennifer Chiou

New York, Nov. 19 - Partner Communications Co. Ltd. said it intends to issue up to two series of unsecured notes in a roughly NIS 360 million private placement.

The company will offer the notes to institutional investors in Israel.

Partner said that the series B notes will not be linked to any currency or index. They will bear interest at 5.5% and are expected to be repayable in four equal annual installments between 2012 and 2015.

The 4% series C notes will be linked to increases to the Israeli consumer price index and are anticipated to be repayable in four equal annual installments between 2013 and 2016.

Following the notes' listing on the Tel Aviv Stock Exchange, the interest rates will be determined in a tender to institutional investors in Israel, which is expected to take place on Nov. 25.

Partner added that it intends to use the proceeds from the offering for the refinancing of its debt and/or as a substitute for bank financing for the payment of dividends resulting from a planned capital reduction.

The company stated that it is considering a capital reduction in an amount that may vary between NIS 1 billion and up to NIS 1.4 billion and is expected to take place in 2010.

The notes have been rated ilAA-/stable, on a local scale, by Standard & Poor's Maalot.

Partner Communications is a Rosh Ha'ayin, Israel, mobile communications operator.

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