Internet Gold - Golden Lines (Nasdaq: IGLD) today announced that pursuant to its Shelf Prospectus dated September 1, 2010, the Company filed today a Supplemental Shelf Offering Report (the "Offering Report") with the Israel Securities Authority and the Tel Aviv Stock Exchange Ltd ("TASE").
Pursuant to the Offering Report, the Company is offering (the "Public Offer") up to NIS 150 million (approximately $39 million) of a series of unsecured and non-convertible Series C Debentures (the "Series C Debentures") which will mature during the period of 2016-2019, to be sold at par value as further detailed below:
The Series C Debentures are payable in four equal annual installments on March 10 of each of the years 2016 through 2019, bearing a fixed annual interest rate to be set in the public tender (which will not exceed 4.8% per annum), payable semi-annually on March 10 and on September 10 of each of the years 2011 through 2019 (the first interest payment will be made on March 10, 2011, and the last interest payment will be made on March 10, 2019). The Series C Debentures are linked to the Israeli Consumer Price Index.
The Company also has an over allotment option to offer up to an additional NIS 22.5 million (approximately $6 million) of Series C Debentures.
The public tender for all of the Series C Debentures is expected to be held on September 28, 2010. The net proceeds from the Public Offering, if completed, after deduction of the arrangers fees and other expenses and commissions of the Public Offering (assuming the Company does not exercise the over-allotment option) are expected to be approximately NIS 148,639,000.
The Series C Debentures will be listed for trading on the TASE. On September 21, 2010, Midroog Ltd., an Israeli rating agency, affiliated with Moody’s, announced that it assigned its "A3" rating (local scale) to the unsecured debentures to be issued by the Company, which include the Series C Debentures. The consummation of the Public Offering and its terms are subject to market conditions. Accordingly, there is no assurance at this stage that the Public Offering will be completed.