Alon Israel Fuel completed raising NIS 240 million through GE Capital yesterday. This was the first stage of a general plan to raise NIS 1 billion in the US to expand operations in that country.
The first stage involved raising NIS 240 million, of which NIS 175 million has been raised. The capital was raised for a 10-year period, bearing 7.5% fixed-interest in dollars. Repayment of the principle is over 20 years.
Alon raised the capital for its US operations. Alon will use the rest of the initial capital, NIS 65 million, to build or acquire gas stations and expand its chain of 7-11 convenience stores in the US.
Alon is the largest franchisee of this well known North American chain. In August 2000, Alon acquired Total-Fina's US operations, includes a major oil refinery in Texas, thousands of miles of fuel pipelines, six oil products storage and distribution terminals and a chain of 1,700 Fina-brand gas stations.
Alon Israel Fuel CEO David Weissman today confirmed that the company was negotiating to buy oil refineries and logistical systems (terminals and pipelines) in the US. The investment will probably amount to hundreds of millions of shekels.
Published by Globes [online] - www.globes.co.il - on October 2, 2002