B Communications Proposes To Offer Up To $775 Mln Of Senior Secured Notes

(RTTNews) - B Communications Ltd. (BCOM) announced Thursday that it proposes to offer up to $775.00 million aggregate principal amount of Senior Secured Notes in U.S. dollar and euro tranches, subject to market conditions.

The Notes will be senior obligations of B Communications and will be guaranteed by its two wholly-owned subsidiaries, B Communications (SP1) Ltd. and B Communications (SP2) Ltd. on a senior secured basis.

The company said that it plans to use the net proceeds from the offering 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 Notes offering, the company plans to redeem using its unrestricted cash on hand all of its outstanding Series A Debentures (NIS 186 million as of September 30, 2013).