Partner Communications Company Ltd. (PTNR) announced that it is initiating a process to raise about NIS 360 million through a private placement of up to two series of unsecured non-convertible Series B and Series C notes to institutional investors in Israel.
Series B notes will not be linked (principal and interest) to any currency or index. The principal amount of Series B Notes is expected to be repayable in four equal annual installments between 2012 and 2015 and bear interest at an annual rate of 5.5% until the listing of Series B Notes for trade on the Tel Aviv Stock Exchange or TASE.
Series C notes will be linked (principal and interest) to increases to the Israeli consumer price index. The principal amount of Series C Notes is expected to be repayable in four equal annual installments between 2013 and 2016 and bear interest at an annual rate of 4% until the listing of Series C Notes for trade on the TASE.
The interest rate to be borne by Series B Notes and Series C Notes following their listing for trade on the TASE will be determined in a tender to institutional investors in Israel which is expected to take place on or about November 25, 2009.
Partner intends to use the proceeds from the Offering for the refinancing of its debt and/or as a substitute for bank financing for the payment of dividend resulting from a planned capital reduction. Partner is considering a capital reduction in an amount that may vary between NIS 1 billion and up to NIS 1.4 billion and is expected to take place in 2010.
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