ImageSat International NV today raised $34 million in bonds in a private placement for investment institutions. The company originally planned to raise $30 million, but increased the placement from NIS 140 million to NIS 160 million when it was over-subscribed. IBI Investment House Ltd. (TASE:IBI) led the placement.
Israel Aircraft Industries Ltd. (IAI) controls ImageSat with a 42% stake, and Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) owns 12.4% thanks to a prior investment by El-Op Electro-Optics Industries. ImageSat sells satellite reconnaissance imaging services for civilian use, from its Earth Remote Observation Satellite (EROS) A satellite launched in December 2000. The company is readying the EROS B satellite for launch in April. A third satellite is now being designed, and is slated for launch in 2009.
ImageSat originally planned to finance the launch of EROS B with proceeds from a flotation on Wall Street. The issue has been delayed, and is now scheduled for late this year, underwritten by UBS.
ImageSat is run by Shimon Eckhaus, who took up his post in September 2005. In a press release, he said the placement was a vote of confidence in the company and its development plans by Israel’s investor community.
The private placement comprised cash flow-backed bonds rated A2 by Midroog Ltd. ImageSat’s cash flow comes from two large contracts with two governments amounting to $80 million. The company has long-term service contracts with a revenue backlog of hundreds of millions of dollars. The company issued two series of bonds, one index-linked, and the other dollar-linked, with a duration of four years.
Published by Globes [online], Israel business news - www.globes.co.il - on March 2, 2006