June 26, 2013
Alon Blue Square Israel Ltd. (NYSE: BSI) (hereinafter: "
Alon Blue Square
" or the "Company") announced today that it has agreed with Israeli institutional investors to issue to such investors in a private placement
NIS 100 million
par value (approximately
) of additional Series C Notes (the "Additional Series C Notes") in consideration for an aggregate sum of approximately
NIS 99.3 million
) (the "Private Placement").
If issued, the terms of the issued Additional Series C Notes will be similar to the terms of the Series C Notes previously issued by the Company and which are currently traded on the Tel Aviv Stock Exchange Ltd. ("TASE"). If issued, the Additional Series C Notes will form a single series together with the currently outstanding Series C Notes. 17.4% of the Additional Series C Notes issued in the Private Placement were acquired by the Company's subsidiary, Dor Alon Energy In
The issuance of the Additional Series C Notes is subject to the receipt of the approval of the TASE for the listing of such Series C Notes.
The sale and/or transfer of the Additional Series C Notes are subject to the limitations on re-sale of securities set forth in the Israeli Securities Law of 1968 and the regulations promulgated thereunder applicable to private placements.
The weighted discount rate for the sole purpose of withholding tax with respect to the entire Series C Notes (including the previously issued Series C Notes and following the issuance of the Additional Series C Notes) was determined to be 5.99% calculated in accordance with the approval received by the Company from the Israeli Tax Authority.