Israel's second largest unmanned aerial vehicle (UAV) manufacturer, Aeronautics Ltd., is in talks to obtain NIS 120 million in credit from debt recycling fund Beresheit and KCPS Israel Private Equity Partners LP's fund in equal shares. No deal has yet been reached.
The talks come a day after "Globes" revealed that Channel 10 is seeking to raise more than NIS 100 million from the Origo debt recycling fund.
So far as is known, the parties are discussing a debt deal, which will probably include a small equity component. To date, and irrespective of the current deal in the works, the debt recycling funds usually provide credit at more than 7% CPI-linked annual interest.
Beresheit and KCPS declined to comment on the report.
Last year, Viola Euity Partners invested $20 million in Aeronautics for a 10% stake in the company, reflecting a company value of $200 million. Other parties also invested in that financing round, including $8 million by Poalim Capital Markets - Investment Bank Ltd. 888 Holding plc (LSE:888) controlling shareholders, the Shaked family, are also investors in the company.
Yavne-based Aeronautics is Israel's fifth largest defense company. The company's UAVs are sold for military and civilian uses all over the world.
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2010
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