B Communications Ltd. (Nasdaq: BCOM) today announced that pursuant to its Shelf Prospectus dated September 1, 2010, the Company has successfully completed today the institutional stage of its Series B Debentures offering in Israel.
The Company has received early commitments from institutional investors for the purchase of the Series B Debentures in an aggregate principal amount of NIS 330,206,000 (the "Early Commitments"), with an interest rate of no more than 6.5% per annum. In consideration for their providing early commitments, the institutional investors will receive an early commitment fee of 0.65% of the Early Commitments.
The public tender for the Series B Debentures is expected to be held on September 21, 2010, subject to TASE approval to the Company's Supplemental Shelf Offering Report.
The final pricing information relating to the proposed public offering is as follows:
Series B Debentures in an aggregate principal amount of up to NIS 400,000,000 (approximately $107 million), payable in 4 equal annual installments on March 31 of each of the years 2016 through 2019, bearing a fixed annual interest rate to be set in a public tender (which will not exceed 6.5% per annum), payable semi-annually on March 31 and on September 30 of each of the years 2011 through 2019 (the first interest payment will be made on March 31, 2011, and the last interest payment will be made on March 31, 2019). The Series B Debentures are NIS denominated and are not linked to the Israeli Consumer Price Index.
As previously reported, and subject to TASE approval the Series B Debentures will be listed for trading on the TASE. On September 1, 2010, Midroog Ltd., an Israeli rating agency, announced that it assigned its "A2" rating (local scale) to unsecured debentures to be issued by the Company, which include the Series B Debentures.