Plenus is stepping into the void created left by the banks who are hesitant to lend money.
Plenus Venture Lending Fund is stepping into the void created left by the banks who are hesitant to lend money to finance transactions and at a time when it also is difficult to raise money on the capital market. Plenus unit Plenus Mezzanine 2006 Ltd. will lend Orad Ltd. (TASE:ORAD) NIS 25 million to help fund its takeover of AFSK Industries Ltd. (TASE: AFSK). Plenus will also make available an additional NIS 10 million over the coming year.
Plenus extended a five-year CPI-linked loan at 7% interest. Plenus has the option of converting the loan into AFSK shares at a company value of NIS 67.5 million, more than double its current market cap. Under the terms of the agreement, the value of the conversion will rise by 5% a year so long as Orad owns at least 51% of AFSK.
Published by Globes [online], Israel business news - www.globes-online.com - on July 13, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008