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Internet Gold - Golden Lines Ltd. is Considering a New Issuance of Unsecured Debentures to Israeli Institutional Investors

IGLDF, BCOMF

PR Newswire

RAMAT GAN, Israel, June 1, 2017 /PRNewswire/ --

Internet Gold - Golden Lines Ltd. (the "Company", Internet Gold") (NASDAQ and TASE: IGLD), today announced that the Company is examining the possibility of a new issuance of unsecured debentures (the "Series E Debentures") to Israeli "classified"/"institutional" investors (as defined under the exemptions of section 15 of the Securities Law, 5728-1968 and the First Schedule of The Securities Law) (and which are not "U.S. persons", as such term is defined in Regulation S under the Securities Act of 1933), in an aggregate amount of approximately NIS 150 million par value.

If issued, the Series E Debentures will be listed on the TACT-Institutional System maintained by The Tel Aviv Stock Exchange Ltd. ("TASE"), subject to approval by the TASE.

The Series E Debentures may not be resold in the United States or to any "U.S. person" absent registration under the Securities Act or the availability of an applicable exemption from the registration requirements under the Securities Act.

According to the proposed offering, the principal of the Series E Debentures will be payable in six installments, consisting of: (a) five equal installments, each equal to 10% of the principal of the Series E Debentures, payable on December 15 of each of the years 2019 to 2023 (inclusive); and (b) one installment of 50% of the principal of the Series E Debentures, payable on December 15, 2024. It is expected that the Series E Debentures will bear annual interest at a fixed rate to be determined in an interest-rate auction.

The offering is also subject to the confirmation by Midroog Ltd., an Israeli rating company.

"The new issuance is being executed, among else, in anticipation of the implementation of the Israeli Concentration Law and to enable the Company to finance its activities through non-public registered instruments under the law's requirements. In accordance with our Initial assessments, this issuance phase is the beginning of a process which will be finalized until the second half of 2019, among else, with the required shares delisting from the TASE and/or the merger of the Company with its Subsidiary, under the Israeli Concentration Law," said Doron Turgeman, the CEO of Internet Gold - Golden Lines.

Attached to this report is a draft of the Debenture and the lien account document.

About Internet Gold 

Internet Gold is a telecommunications-oriented holding company which is a controlled subsidiary of Eurocom Communications Ltd. Internet Gold's primary holding is its controlling interest in B Communications Ltd. (TASE and Nasdaq: BCOM), which in turn holds the controlling interest in Bezeq, The Israel Telecommunication Corp., Israel's largest telecommunications provider (TASE: BEZQ). Internet Gold's shares are traded on NASDAQ and the TASE under the symbol IGLD. For more information, please visit the following Internet sites:

http://www.igld.com

http://www.bcommunications.co.il

http://ir.bezeq.co.il

http://www.eurocom.co.il

Forward-Looking Statements 

This press release contains forward-looking statements that are subject to risks and uncertainties.  Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the industry, changes in the regulatory and legal compliance environments, the failure to manage growth and other risks detailed from time to time in Internet Gold's filings with the Securities Exchange Commission.  These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.  Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

For further information, please contact: 

Idit Cohen - IR Manager  

idit@igld.com / Tel: +972-3-924-0000

Investor relations contacts: 

Hadas Friedman - Investor Relations 

Hadas@km-ir.co.il / Tel: +972-3-516-7620


SOURCE Internet Gold – Golden Lines Ltd.



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