Internet Gold - Golden Lines Ltd. (Nasdaq: IGLD) today announced that following the filing of a supplemental prospectus dated September 26, 2010, and pursuant to its shelf prospectus filed on September 1, 2010, the public tender in connection with the public offering in Israel of the Company's Series C Debentures was successfully completed.
The Company expects to issue, at par value, NIS 170,329,000 (approximately $46 million) aggregate principal amount of Series C Debentures (after exercising an over - allotment option to offer up to an additional NIS 20,329,000 (approximately $5,528,692) aggregate principal amount of Series C Debentures). The Series C Debentures are payable in four equal annual installments on March 10 of each of the years 2016 through 2019 and pay interest at a fixed annual rate of 4.45%, as determined by the public tender, which is payable semi-annually on March 10 and 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 NIS denominated and are not linked to the Israeli consumer price index. The interest rate for the first interest period beginning on October 3, 2010 and ending on March 9, 2011 for the Series C Debentures, is 1.92630%.
The Series C 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 C Debentures will be listed for trading on the Tel Aviv Stock Exchange Ltd.
The net proceeds from the public offering, after deduction of arranger’s fees, early commitment fees and other expenses and commissions, are expected to be approximately NIS 168,805,585.
On September 21, 2010, Midroog Ltd., an Israeli rating agency, announced that it assigned its "A3" rating (local scale) to unsecured debentures to be issued by the Company, which include the Series C Debentures.