Sources inform ''Globes'' that packaging manufacturer Tadbik Ltd. (TASE: TDK.B1) subsidiary Tadbik Pack Ltd. has raised NIS 50 million in debt and equity debt recycling fund Origo. Tadbik is controlled by IEL Israel Equity Ltd. and Ilan Drori.
In a notice to the TASE, Tadbik said that Tadbik Pack raised NIS 10 million in exchange for 4.76% of its shares, at a company value of NIS 210 million, plus a NIS 40 million credit line. The company said that it would use the loan to develop Tadbik Pack's business.
Origo has an option to buy 8.66% of Tadbik Pack at NIS 40 per share when the allotment agreement is closed, and it has an option to sell the shares at NIS 53.8 per share. The loan will bear 6% annual interest, which will be repaid in biannual installments, and the principal will be repaid in four equal annual installments beginning in three years.
Origo will receive a priority lien on Tadbik Pack shares.
Tadbik's revenue rose to NIS 310 million in the first half of 2011 from NIS 272 million in the first half of 2010, and its net profit almost quadrupled to NIS 8.1 million from NIS 2.2 million. Last month, Standard & Poor's Maalot Ltd. updated Tadbik's bond rating to BBB-, with a "Stable" outlook, from BB+, saying, "Tadbik improved its operating and financial performance in the past 12 months. Although we still see weak liquidity, we believe that Tadbik will continue to recycle its short-term debt and long-term loans, as it has done in the past."
If the deal is closed, it will be Origo's tenth investment. Origo has NIS 1.3 billion under management.
Published by Globes [online], Israel business news - www.globes-online.com - on October 6, 2011
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