Bethel Finance news:
Orckit Communications Ltd. has published a prospectus for a NIS 75.2 million debt issue on the Tel Aviv Stock Exchange . The company wants to issue unlinked convertible bonds at 94% of their par value, and bearing 6% annual interest. The interest will be paid in two installments.
The bonds can be converted into shares at a ratio of 12.3 bonds per share, a 20% premium on the share's current opening price on the TASE. The principle will be repaid in one installment in December 2017. If all the bonds are converted, they will amount to 22% of Orckit's share capital.
In 2007, Orckit issued NIS 107 million in CPI-linked convertible bonds. The bonds are redeemable in 2017, with an option for early repayment in March 2012 at par value, but without the linkage payment.
Orckit will use proceeds from the offering for current operations. It may use part of the proceeds to pay bondholders who chose to exercise their Series 1 bonds.
Orckit's share price fell 6.2% on the TASE today to NIS 10.22, after falling 1.6% on Nasdaq on Friday to $3.13, giving a market cap of $71 million.
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