Internet Gold Announces That it's Subsidiary, B Communications Improves Its
Financial Position Through Modifications to Its Financing Agreement with a
Consortium of Israeli Banks
RAMAT GAN, Israel -- November 6, 2013
Internet Gold-Golden Lines Ltd. (Nasdaq: IGLD) announces that its subsidiary,
B Communications ("B Communications") today announced that it has finalized a
new agreement with the Israeli bank consortium led by Bank Hapoalim, thereby
modifying the financing agreement that it utilized to help finance its
purchase of the controlling interest in Bezeq - The Israel Telecommunications
Corp., Ltd. (“Bezeq”) in 2010.
The modifications are expected to immediately improve B Communications'
financial position by gradually decreasing the amount of its repayments due
through the end of 2016 and increasing the reserves available to it for
distribution and other uses. The modification includes the following elements:
*Permits early repayment of NIS 400 million of the bank debt;
*Decreases B Communications' mandatory bank debt repayments by
approximately NIS 150 million per year from approximately NIS 480 million
per year to approximately NIS 330 million per year;
*Permits B Communications (SP2) Ltd. (“SP2”), B Communications'
wholly-owned subsidiary that holds its Bezeq shares, to pay B
Communications a dividend totaling approximately NIS 250 million by
November 10, 2013; and
*Revises existing covenants to allow B Communications to cause SP2 to
distribute most of the reserves that it accumulates to B Communications.
Commenting on the news, Mr. Doron Turgeman, B Communications’ CEO, said, “We
are very pleased with this agreement and believe it represents the next step
in our business development. For the past three years, we have met all of our
business objectives while continuously decreasing our net financial debt -
from NIS 5.3 billion in April 2010 to just NIS 2.7 billion today. This
modification to our financing agreement creates a much more convenient
repayment schedule that will enhance our liquidity and financial flexibility.
We believe this will bring a significant improvement to our financial position
and future cash flow."
About B Communications Ltd.
B Communications is a telecommunications-oriented holding company and its
primary holding is its controlling interest in Bezeq, The Israel
Telecommunication Corp., Israel’s largest telecommunications provider (TASE:
BZEQ). B Communications shares are traded on NASDAQ and the TASE under the
symbol BCOM. For more information please visit the following Internet sites:
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 B Communications' 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
Idit Cohen, IR Manager
Investor relations contact:
Mor Dagan, Investor Relations
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