Venture lender Plenus increases Orad loan

Most of the funds will be used to pay off a previous loan.

Plenus Venture Lending Fund yesterday recycled and expanded its loan to real-time 3D broadcast graphics developer Orad Hi-Tec Systems Ltd. (XETRA: OHT), and will get back the loan it extended the company 18 months ago. Orad will use NIS 35 million of the new NIS 60 million loan to repay its previous loan to Plenus, which Orad used to acquire 85% of AFSK Industries Ltd. (TASE: AFSK).

The new Consumer Price Index (CPI) linked loan is for six years and bears 7% annual interest. It will be repaid in 48 monthly payments beginning two years from the completion of the deal, which is due in mid-March. Orad will repay the previous loan to Plenus on that date.

Orad said today that the new loan would help the company expand its current business and cope with its liabilities. According to Orad's financial report for January-September 2009, its current liabilities total NIS 182.5 million, compared with its shareholders' equity of NIS 67 million.

As with the terms of previous loan, Orad is giving Plenus a lien on 61% of AFSK as well as 15% of Orad shares held by the Aduram family. The lien gives Plenus an option to acquire up to 10% of Orad.

Orad is controlled by Amnon and Ariel Aduram and Shamrock Holdings. Orad's share fell 5.3% on Germany's XETRA today to €1.93.

Published by Globes [online], Israel business news - - on February 11, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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