| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for Gilat Satellite Networks Ltd. > News item |
Gilat Satellite says creditors approve restructuring
New York, Feb. 5 - Gilat Satellite Networks Ltd. said its bank lenders and holders of its 4.25% convertible subordinated notes due 2005 approved its previously announced debt restructuring plan.
The Petah Tikva, Israel satellite telecommunications company said the support from these lenders is the final credit approval it needs, adding that it now expects to file with the Israeli District Court in Tel Aviv for approval.
Support from holders of 75% of each class of debt and a majority by number was required for approval of the plan.
Under the proposed restructuring, the existing $350 million of 4.25% convertibles due 2005 will be exchanged for 202,083,908 ordinary shares and $83.254 million principal amount of new 4% convertible notes due 2012. Each $1,000 principal amount of existing notes will be exchanged for 577.38 ordinary shares and $237.87 in new notes. Fractional shares and fractional new notes will be rounded up to the next whole share or dollar.
For the $102 million Gilat owes to Bank Hapoalim BM, $25.5 million will be converted into 18,488,590 ordinary shares, $5.1 million into new notes with the same principal amount and the remaining $71.4 million will remain as a loan on revised terms. The revised terms include equal semiannual installments of principal of $4.463 million beginning on July 2, 2005, with a last installment of $8.925 million on July 2, 2012. Interest will be at six-month Libor plus 250 basis points.
The $30 million loan owed to Bank Leumi Le Israel BM will be revised. There will be annual principal payments of $1 million in 2003 and 2004 and annual principal payments of $4 million for 2005 through 2011. Interest will be at six-month Libor plus 250 basis points.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.