Elbit Medical Imaging (Nasdaq: EMITF; TASE: EMIT) announced today that it had agreed to issue NIS 350 million aggregate principal amount of unsecured non-convertible debentures, consisting of two series, to investors in Israel.
The first series will consist of NIS 294 million in principal amount of Series A Debentures, which will bear interest at a rate of 6% per annum and will be linked (principal and interest) to increases to the Israeli consumer price index.
The second series will consist of NIS 56 million in principal amount of Series B Debentures, which will bear interest at a rate of LIBOR plus 2.65% per annum, and will be linked (principal and interest) to changes to the representative rate of exchange between the shekel and the US dollar.
Elbit Medical Imaging will also issue an additional NIS 44 million in principal amount of Series B Debentures to a subsidiary of the company.
EMI has undertaken to use its best efforts to register the two series of debentures for trade on the Tel Aviv Stock Exchange no later than August 30, 2006. So long as the debentures are not registered for trade on the Tel Aviv Stock Exchange, Elbit Medical Imaging has undertaken, among other things, to pay an additional interest at an annual rate of 0.3%.
Midroog Ltd., affiliated with Moody's Investors Services, has rated the bonds A2. The offering was led by Leumi Underwriters, with Meitav Underwriting, Excellence Nessuah Undewriting, and Clal Finance Underwriting as co-managers.
The proceeds will be used for real estate projects in Asia, as well as to expedite projects in Eastern and Central Europe.
Elbit Medical Imaging has a market cap of $360 million. Its share price has risen 11% so far this year.
Published by Globes [online], Israel business news - www.globes.co.il - on February 22, 2006
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