By Susanna Moon
Chicago, Jan. 9 – Israel’s Partner Communications Co. Ltd. upsized its add-on issue to its series F debentures on Dec. 1, 2019 by NIS 100 million, which brings the total size to NIS 226.75 million.
As announced Dec. 28, the company agreed to sell another NIS 126.75 million of series F debentures with a Dec. 1, 2019 deferred closing date in a private placement to some Israeli institutional investors.
The company then entered into an agreement on Tuesday with another institutional investor for a deferred private placement of NIS 100 million, according to a 6-K filing with the Securities and Exchange Commission.
The uniform weighted discount rate for all of the series F debentures will be 0.085223%, the filing noted.
As previously announced, the price for the original add-on was set at NIS 1.013 for each NIS 1 par amount for total proceeds of NIS 128 million, reflecting an effective yield of 2.02% per year.
In addition, the company will pay the institutional investors an early commitment fee. If the debentures' rating on the agreed date is il/(A-) or below, there will be a discount of about 1% on the price given.
If the additional debentures are issued at the full price, then the price of each NIS 1 par value, less the accrued interest, will be about NIS 1.00359. If the debentures are issued at a price reflecting roughly 1% discount (following a rating reduction event), then the price of each NIS 1 par value, less the accrued interest, will be about NIS 0.99359.
The agreement terms include a commitment by the company to not issue any further series F debentures for a period of six months from the date of the agreement.
As reported, the issuer originally sold NIS 254.55 million of the series F debentures at par on July 19 with a coupon of 2.16%.
The company had launched a public offering in Israel of up to NIS 300 million of the series F debentures.
The original proceeds from the Regulation S securities were to be used to increase the company’s liquidity so that it can meet scheduled debt repayments, according to a previous announcement.
Partner Communications is a Rosh Ha’ayin, Israel, mobile communications operator.
| Issuer: | Partner Communications Co. Ltd.
|
| Issue: | Series F debentures
|
| Add-on amount: | NIS 226.75 million, upsized from NIS 126.75 million
|
| Proceeds: | NIS 128 million for the first NIS 126.75 million
|
| Maturity: | June 25, 2024
|
| Coupon: | 2.16%
|
| Price: | Par for original amount, 101.3 for add-on
|
| Yield: | 2.16% for original issue, 2.02% for add-on
|
| Discount rate: | 0.085223%
|
| Original settlement date: | July 19
|
| Add-on settlement date: | Dec. 1, 2019
|
| Add-on upsizing date: | Jan. 9
|
| Rating: | Maalot S&P: ilA+ for original issue
|
| Distribution: | Regulation S for original issue
|
| Original issue: | NIS 254.55 million
|
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