B Communications, the holding company that controls Israeli incumbent Bezeq, has signed a new financing agreement with a consortium of local banks, modifying certain terms of a previous facility.
The original NIS3.9bn (US$1.1bn) financing was secured…
B Communications, the holding company that controls Israeli incumbent Bezeq, has signed a new financing agreement with a consortium of local banks, modifying certain terms of a previous facility.
The original NIS3.9bn (US$1.1bn) financing was secured three years ago to allow B Com to acquire a 30.44% controlling interest in Bezeq.
The new agreement signed with the lenders, led by Bank Hapoalim, enables B Com to make an early repayment of NIS400m (US$113.1m) of debt. It also decreases the company’s mandatory debt repayments by about NIS150m to NIS330m (US$93.3m) per year.
The holding said in a statement that these modifications will immediately improve its financial position by “decreasing the amount of the company’s repayments due through the end of 2016 and increasing the reserves available to the company for distribution and other uses”.
B Com CEO Doron Turgeman added: “For the past three years, we have met all of our business objectives while continuously decreasing our net financial debt – from NIS5.3bn [US$1.5bn] in April 2010 to just NIS2.7bn [US$762m] today. This modification to our financing agreement creates a much more convenient repayment schedule that will enhance our liquidity and financial flexibility”.
Bezeq is Israel’s largest telco, providing fixed-line, mobile, internet and pay-TV services. The state has regularly reduced its stake in the company from 100% in 1990 to about 6% nowadays.
