Tuesday, July 5, 2011

Bethel Finances: Makhteshim signs $960m ChemChina loan agreement

www.bethelfinance.com

Nochi Dankner controlled IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR), which controls Makhteshim Agan Industries Ltd. (TASE: MAIN) has signed a loan agreement that will make a $960 million loan available to ChemChina. The funds will enable ChemChina to complete the acquisition of Makhteshim Agan.

The loan will be extended by Export and Import Bank of China with a credit letter guaranteed by HSBC. In accordance with the company's previous announcement, the loan will be repayable over seven years from the completion of the acquisition.

In addition, the sides signed various agreements accompanying the loan such as trustees agreements, registration rights agreements, and agreements between the two companies cancelling mutual commitments to issue $72 million in credit letters required to complete the deal.

As previously reported the deadline for completing the deal has been extended to September 30.

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