Delek Energy (TASE:
) today failed to raise NIS 70.2 million through a bond placement, the company announced.
Delek Energy had postponed its offering by a week to try to improve the terms. It had hoped to raise NIS 80 million, but the offering last Tuesday met with low demand, leading the company to defer it.
It tried again Wednesday, and was supposed to close the matter that day, but dragged it out to today, after the company and its underwriters Gmul Sahar, Leumi & Co, and IBI failed to raise the sought sum.
Under the original terms, the bonds were supposed to yield holders ongoing interest of 6%, and additional accruing interest of 1.75% for anybody holding the bond until maturity in 2010. Maalot had rated the bonds AA-minus.
Delek Drilling (TASE:
) had agreed to guarantee the bonds.
After the first offering failed, Delek Energy and its underwriters decided to offer another option, in which investors would get the whole package on an ongoing basis which translates to annual interest of 7.75%.
In the end investors bought 2.5 million bonds of the first type and 67.7 million bonds of the second time, with the high ongoing returns. The company also received requests for buy 28,100 options unregistered for trade, for no compensation. The options are for four years and bear an exercise price of NIS 200 million, linked to the consumer price index.
The underwriters commented that Maalot had caused the delay by belatedly publishing its rating last Tuesday, a week ago.
Delek Energy last week reported losing NIS 6.6 million in the stock exchange, which reduced its shareholders equity to NIS 15.4 million. For the first half, the company lost a net NIS 12.1 million.
The Delek group is controlled by Yitzhak Tshuva.