Elovitch improves liquidity of Bezeq parent

B Communications has modified its financing agreement with the banking syndicate, which it used to help acquire control of Bezeq in 2010.

B Communications Ltd. (Nasdaq:BCOM; TASE: BCOM), controlled by Shaul Elovitch, is nearing the distribution of a dividend. The company today announced modifications to the financing agreement with the banking syndicate led by Bank Hapoalim (TASE: POLI), which it used to help acquire control of Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) in 2010. The modification will increase the company's liquidity and increase the likelihood that it will announce its first dividend.

B Communications owns 30.9% of Bezeq. It is controlled by Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD) with a 69% stake; Internet Gold is controlled by Elovitch's Eurocom Group.

The modifications allow B Communications to repay NIS 400 million of its bank debt early, decrease its mandatory bank debt from NIS 480 million per year to NIS 330 million per year; allow B Communications (SP2) Ltd. (“SP2”), the wholly-owned subsidiary that holds the company’s Bezeq shares, to pay it a NIS 250 million dividend by November 10, 2013; and allow SP2 to distribute most of the reserves that it accumulates to B Communications.

Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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