Africa-Israel Investments Ltd. (TASE:AFIL), controlled by Lev Leviev, reported today that it is mulling early repayment of capital on its Series 26 bonds due in 2013 and 2014, totaling NIS 600 million.
Africa-Israel is examining offering one or more new bond series, the repayment date of which will be decided in accordance with the company's liquidity reserves and its projected cash flow for the next few years.
The new bond series will be issued as an exchange tender offer that would allow Series 26 bondholders the choice of retaining the current Series 26 bonds or exchanging them for new bonds, which would include an immediate payment of the capital on the Series 26 bonds due in 2013 and 2014.
Africa-Israel CEO Izzy Cohen said, "Africa-Israel management decided to investigate the possibility of early repayment of the principal, as well as examining the use of its excess liquidity, to lower its financial debt. In examining the move, which will be carried out through an exchange tender offer, Africa-Israel management considered, among other things, the accumulation of liquidity reserves at the company, a lack of available investment channels offering acceptable returns on these reserves, and the lack of economic certainty currently prevailing in global markets.
"This move, insofar as it is accepted by bondholders, will enable them to choose whether to continue holding existing bonds, or to exchange them for new bonds. It will also express Africa-Israel's commitment to its bondholders and shareholders to meet its obligations as early as possible," Cohen said.
No comments:
Post a Comment