Scailex Corp. ltd. (TASE: SCIX; Pink Sheets:SCIXF), controlled by Ilan Ben-Dov, today disclosed details of the new financing structure for the acquisition of the controlling interest in Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), ahead of the expansion of Scailex's Series 4 Bond. The new structure includes reducing the bank financing and increasing financing from institutional investors.
Ben-Dov, through Scailex unit Advent Investments pte. Ltd., is acquiring 51.3% of Partner for NIS 5.29 billion from Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332). He has already announced the sale of 6.3% of Partner to third parties: 4.99% to Bank Leumi (TASE: LUMI), 0.68% to Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and 0.64% to Delek Group Ltd. (TASE: DLEKG) unit Excellence Investments Ltd. (TASE: EXCE). Excellence will apparently sell these shares to a foreign bank.
In view of strong demand from institutional investors, Ben-Dov decided to increase their share of the deal. Scailex has already raised NIS 1.4 billion in an issue of four bond series, and now plans to increase its Series 4 Bond by NIS 280 million, in order to spread out the repayment over a longer period. Based on orders, Scailex is expected to increase the offering by a further 15%.
Scailex today published the prospectus for the offering, and the offering's public tender is due to be held tomorrow.
The prospectus states that Scailex will issue Consumer Price Index (CPI) linked bonds bearing a maximum interest rate of 6.2% and with a duration of 4.1 years. The principal will be repaid in four equal installments in 2012-15. Partner shares will form security for the bond.
Scailex also sent a calming message to its bondholders, saying in the presentation that it was committed to distributing dividends only from profits eligible for distribution accumulated in the four quarters preceding the date of the distribution. Scailex also promised that in the two years following the expansion of the bond series, it would not make any substantial non-financial investments outside the communications industry.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2009
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