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Cellcom Israel Announces Filing Of Supplemental Shelf Offering Report In IsraelNETANYA, Israel, Sept. 25, 2016 /PRNewswire/ -- Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) (hereinafter: the "Company") announced that following the Company's previously announced possible debt raising in Israel, the Company filed today a supplemental shelf offering report, or Offering Report, with the Israel Securities Authority and the Tel Aviv Stock Exchange, or TASE, under the Company's shelf prospectus. Pursuant to the Offering Report, the Company is offering, in Israel only, new series J debentures in an aggregate principal amount of up to NIS 125,000,000, and new series K debentures in an aggregate principal amount of up to NIS 355,556,000. The series J and series K debentures are unsecured and contain standard terms and conditions in addition to certain additional undertakings by the Company generally similar to the terms of the Company's existing Series G and Series H debentures, as detailed in the Company's annual report for the year ended December 31, 2016, dated March 21, 2016, on Form 20-F, or the Company's Annual Report 2015, under "Item 5 – Operating and Financial Review and Prospects – B. Liquidity and Capital Resources – Debt Service – Public Debentires". The debentures will be listed for trading on the TASE. The Company has received early commitments from institutional investors for the purchase of the following:
In consideration for making early commitments, the institutional investors will receive an early commitment commission in the amount of 0.7% for series J and 0.7% for series K. The public tender for both series of debentures is expected to be held on Sunday, September 25, 2016. The aggregate amount that the Company expects to pay in arrangement fees and other expenses in connection with this offering (assuming total consideration of approximately NIS 481 million), including the aforesaid commitment commissions, is approximately NIS 4.5 million. The Company estimates that the net proceeds from the Offering, if completed, will be approximately NIS 476 million, after deduction of the arrangers' fees and other estimated expenses. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include financing its operating and investment activity, refinancing of outstanding debt under its debentures and other credit facilities, and dividend distributions, subject to certain restrictions that apply to dividend distributions made by the Company and to the decisions of the Company's board of directors from time to time. For additional details of the Company's Israeli shelf prospectus, the Company's public debentures and other credit facilities see the Company's Annual Report 2015 under "Item 5. Liquidity and Capital Resources – Debt Service" and "Other Credit Facilities"; for details of the Company's dividend policy see the Company's Annual Report 2015 under "Item 8. Financial Information - A. Consolidated Statements and Other Financial Information - Dividend Policy". The offering described in this press release will be made only in Israel and only to residents of Israel. The said debentures will not be registered under the U.S. Securities Act of 1933 and will not be offered or sold in the United States or to U.S. persons. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any debentures. Forward looking statements About Cellcom Israel
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cellcom-israel-announces-filing-of-supplemental-shelf-offering-report-in-israel-300333687.html SOURCE Cellcom Israel Ltd. |