Sources inform ''Globes'' that Scailex Corp. ltd. (TASE: SCIX; Pink Sheets:SCIXF), controlled by Ilan Ben-Dov, is offering institutional investors a new bond and is expanding two current bond series in order to raise NIS 150 million. The offering's institutional tender will be held next week.
As with Scailex's previous NIS 1.5 billion bond offering, the bonds in the new offering will be backed by shares in Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) as security.
The new bond series will have an "A-" rating. The bond will be linked to the Consumer Price Index (CPI) and have a duration of 4.1 years. The principal will be paid in four equal installments in 2012-15. The bond's interest rate will set in the tender, and paid in semiannual installments.
Scailex will expand its Series 1 and 3 bonds. The Series 1 Bond is not linked to the CPI and bears 7% interest, which will be paid in semiannual installments in 2010-14. The duration is 2.9 years, and the principal will be paid in six equal installments in 2011-14.
The Series 3 Bond is linked to the CPI and bears 4.9% interest, to be paid in semiannual installments in 2010-13. The duration is 2.8 years, and the principal will be paid in six equal installments in 2011-13.
If the deal for the acquisition of the controlling interest in Partner is not closed, the bondholders will have the right to demand early repayment from Scailex by March 31, 2010.
Ben-Dov is raising money to pay the NIS 5.3 billion he needs for the acquisition of 51.3% of Partner from Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332). As part of the financing, Scailex has already promised to sell 4.99% of Partner to Bank Leumi (TASE: LUMI) and 0.68% to Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) after it takes control of the company. Ben-Dov is currently seeking another investor.
Ben-Dov controls Scailex through Suny Electronics Ltd. (TASE: SUNY). Scailex's share closed at $5.90 on Nasdaq yesterday. The share rose 1.4% by early afternoon to NIS 69.84.
Published by Globes [online], Israel business news - www.globes-online.com - on October 8, 2009
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