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Elbit Imaging to repurchase up to NIS 50 million notes in new program
New York, Oct. 12 – Elbit Imaging Ltd. said its board of directors has approved a program to buy up to NIS 50 million of the company’s series H and series I notes.
The repurchases will be made in the open market on the Tel Aviv Stock Exchange or in privately negotiated transactions and the program will run for 12 months.
“A significant preference” will be given to buying the series H notes.
“The management believes that due to the high yields of the company’s notes, the repurchase of the notes is the appropriate use of the company’s free cash, which was recently derived from the realization of its hotels in Belgium and other assets,” said Doron Moshe, acting chief executive officer and chief financial officer, in a news release. “This step will decrease the company’s finance costs and will improve its financial stability.”
Chairman Ron Hadassi added: “In the last year and a half, following the completion of the company’s debt arrangement, the company has taken multiple measures to stabilize the company’s financial situation, including sale of several assets, equity rounds in the medical companies, completion of the debt restructuring in Plaza, purchase of the minority shareholdings in the Radison Bucuresti Hotel alongside with a significant cost saving measures in the company’s G&A expenses.
“Following the completion of these steps, Elbit turns to deal with the reduction of its corporate leverage for the benefit of all the company’s stake holders. The repurchases of the company’s Notes will decrease its corporate debt and will enable us to enhance our assets in order to realize them in the optimal timing.”
Elbit Imaging is a company based in Tel Aviv, Israel with interests in commercial centers and other mixed-use real estate projects, predominantly in the retail sector, located in Central and Eastern Europe, hotels, medical industries and devices, and residential projects, primarily in India.
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