Israel's B Communications begins roadshow for $775 million equivalent offering of seven-year notes

By Paul A. Harris

Portland, Ore., Jan. 30 - Israel-based B Communications Ltd. began a roadshow on Thursday in London for a $775 million equivalent offering of seven-year senior secured notes (/BB-/expected BB-), according to a market source.

A roadshow in the United States is scheduled to get underway on Monday.

The deal is set to price on Feb. 10.

On offer are dollar-denominated notes formatted as Rule 144A for life and euro-denominated notes formatted as Regulation S for life.

JPMorgan, Citigroup, HSBC and Discount Underwriting and Issuing Ltd. are the joint bookrunners.

The notes come with three years of call protection.

The Ramat Gan, Israel-based telecommunications-oriented holding company plans to use the proceeds to repay all amounts outstanding under the loans it incurred to acquire its controlling interest in Bezeq - The Israel Telecommunications Corp. Ltd. and to deposit funds into a debt service account.

In addition, subject to the completion of the note offering, B Communications intends to redeem all of its outstanding series A debentures, of which there were NIS 186 million as of Sept. 30, using its unrestricted cash on hand.

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