B Communications Improves Its Financial Position Through Modifications to
Its Financing Agreement with a Consortium of Israeli Banks
RAMAT GAN, Israel -- November 6, 2013
Further to the report dated August 12, 2013, B Communications (Nasdaq: BCOM)
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 the Company’s financial
position by gradually 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. The modification includes the following
*Permits early repayment of NIS 400 million of the bank debt;
*Decreases the Company’s 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”), the Company’s wholly-owned
subsidiary that holds the Company’s Bezeq shares, to pay the Company a
dividend totaling approximately NIS 250 million by November 10, 2013; and
*Revises existing covenants to allow the Company 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
for B Communications Ltd.
Idit Cohen – IR Manager
Investor relations contact:
Mor Dagan - Investor Relations
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