Israel's Partner Communications delays plans for NIS 1 billion notes, named in class action suit

By Jennifer Chiou

New York, April 19 - Partner Communications Co., Ltd. said that its public tender for notes recently filed under a supplemental shelf offering report with the Israel Securities Authority and the Tel Aviv Stock Exchange will be rescheduled from April 18.

The company will sell up to NIS 1 billion of non-convertible notes under the shelf.

The delay is due to Partner being served a lawsuit and a motion for recognition as a class action for roughly NIS 343 million. According to a company news release, the claim alleges that Partner charges its subscribers for certain content services without their consent.

The company said it is reviewing the suit.

Partner's offering was to involve three new series of unsecured non-convertible notes, which will be sold at par and have maturities ranging from 2013 to 2021.

As already reported, Partner 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 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 not to exceed 1.25%.

The third note offered in the financing will be for 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%.

Partner previously said it had already received early commitments from some investors who will buy NIS 160 million of the series C notes, NIS 340 million of series D notes and NIS 340 million of series E notes. In consideration for making early commitments, these investors are to also receive a 0.5% commission on their series C and E notes and a 0.7% commission on the series D notes.

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.

© 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.