By Jennifer Chiou
New York, April 2 - Elbit Medical Imaging Ltd. announced the issue of NIS 334 million of unsecured nonconvertible series D notes to investors in Israel.
The interest rate is 5% and is linked to Israel's consumer price index.
The interest rate on the notes will be increased until a prospectus is published for the registration of the securities on the Tel Aviv Stock Exchange. The company said it is using its best efforts to register the notes no later than Aug. 30.
If the notes are not registered on the Tel Aviv Stock Exchange, Elbit said it will pay additional interest of 0.5% until a prospectus is published for the registration of the notes. In addition, the company will also refrain from making any distribution to its shareholders, which does not comply with the profit and solvency tests, and Elbit will prepay the series D notes at the option of the trustee or noteholders if the rating slips below Baa2 or the holdings of Europe-Israel (M.M.S.) Ltd., Elbit's controlling shareholder, drops below 25% of Elbit's issued share capital.
The notes will be repayable in eight annual equal installments starting in April 2013 and ending in April 2020.
The notes were rated A1 on a local scale by Midroog Ltd., a credit-rating agency affiliated of Moody's Investors Service.
The Tel Aviv, Israel-based company is engaged principally in the development of commercial and entertainment centers in central and eastern Europe.
| Issuer: | Elbit Medical Imaging Ltd.
|
| Issue: | Unsecured nonconvertible series D notes
|
| Amount: | NIS 334 million
|
| Maturity: | April 2020
|
| Interest rate: | 5%
|
| Rating: | Midroog: A1 local scale
|
| Announcement date: | April 2
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