Partner Communications plans NIS 1 billion non-convertible notes sale

By Devika Patel

Knoxville, Tenn., April 15 - Partner Communications Co., Ltd. said it has filed a supplemental shelf offering report with the Israel Securities Authority and the Tel Aviv Stock Exchange under which it will raise up to NIS 1 billion from a convertible notes offering.

The company is offering three new series of unsecured non-convertible notes which will be sold at par and have maturities ranging from 2013-2021.

It will sell up to NIS 200 million in series C notes which will be payable in three equal annual installments from 2016 through 2018. The notes will carry a fixed annual interest rate which is not to exceed 3.4%.

It also plans to offer NIS 400 million in series D notes which will be payable in five equal annual installments from 2017 through 2021. The notes will bear a floating annual interest rate which will not exceed 1.25%.

The third note offered in the financing will be up to NIS 400 million in series E notes which will be payable in five equal annual installments from 2013 through 2017. These notes will have a fixed annual interest rate that will not exceed 5.55%.

The company has already received early commitments from some investors who will buy NIS 160 million of the series C notes, NIS 340 million in series D notes and NIS 340 million in series E notes. In consideration for making early commitments, these investors will also receive a 0.5% commission on their series C and E notes and a 0.7% commission on the series D notes.

The public tender for all of the notes will be held on April 18.

Proceeds will be used for refinancing debt and for general corporate purposes.

On April 8, Standard & Poor's Maalot assigned its 'ilAA- rating to the notes.

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

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