B Communications Ltd. (Nasdaq: BCOM) today announced that following the filing of a Supplemental Shelf Offering Report dated September 21, 2010, and pursuant to its Shelf Prospectus dated September 1, 2010, the public tender in connection with the public offering in Israel of the Company's Series B Debentures was successfully completed.
The Company expects to issue, at par value, NIS 400,000,000 (approximately $107 million) Series B Debentures. The Series B Debentures are payable in four equal annual installments on March 31 of each of the years 2016 through 2019, pay interest at a fixed annual rate of 6.5% as was set in the public tender, 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. The interest rate for the first interest period beginning on September 26, 2010 and ending on March 30, 2011 for the Series B Debentures, is 3.31233%.
The Series B Debentures contain standard terms and conditions and are unsecured, non convertible and do not restrict the Company's ability to issue any new series of debt instruments or distribute dividends in the future. The Series B Debentures will be listed for trading on the Tel Aviv Stock Exchange Ltd.
The net proceeds from the Public Offering, after deduction of the arrangers fees, early commitment fees and other expenses and commissions of the Public Offering, are expected to be approximately NIS 395,800,000.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.