Gazit-Globe Ltd. Enters into Credit Facility Agreements with Two Foreign Banks
Sep 2 15
Gazit-Globe Ltd. reported that it has entered into credit facility agreements with two foreign banks in an aggregate amount of USD 284.5 million, and also that it intends to enter into an agreement with a local bank for the partial reduction of a credit facility, such that the Company’s credit facilities will not change in a material amount, as follows: On September 1, 2015, wholly-owned subsidiaries of the Company entered into two credit facility agreements with Citibank N.A., for a period of three years, in an amount of USD 170 million and CAD 52 million (in total, USD 210 million). The credit agreements replace the previous agreements between the aforementioned subsidiaries and Citibank, while extending their term and increasing the amount of the credit extended there under (prior to amending the credit facilities their overall amount was USD 85 million and CAD 52 million). The credit facilities bear interest at LIBOR or CDOR, plus a fixed spread. Moreover, the credit facilities are secured by a pledge on some of the subsidiaries’ shares held by the Company – Equity One Inc., First Capital Realty Inc., Citcon Oyj., which as of the date of execution the minimal pledge required shall be 9.2 million EQY shares, 7.0 million FCR shares, and 40.4 million CTY shares, as well as a guarantee from the Company and the wholly-owned subsidiaries (limited to the amount of the pledged shares). The agreement stipulates restrictions in relation to the maximum quantity of shares that may be pledged to secure the credit. Pursuant to the credit agreements, the ratio of the amount of the debt utilized under the facilities to the value of the collateral (based on average market value) shall not exceed 57.5% (in relation to the agreement in an amount of USD 170 million that is secured by the EQY and CTY shares) and shall not exceed 60% (in relation to the agreement in an amount of CAD 52 million that is secured by the FCR shares). In parallel, additional wholly-owned subsidiaries of the Company have entered into a credit facility agreement in an amount of USD 75 million with another foreign bank, for a period of 30 months, which is also secured by EQY, FCR andCTY shares. It should also be noted that, in parallel with entering into the aforementioned agreements, the Company is working with Bank Leumi LeIsrael Ltd. and a foreign bank owned by the latter (collectively, “Leumi”) to reduce its credit facility from Leumi (that is described in section 19.2.4 of the Company’s annual report for the year ended December 31, 2014). In the course thereof, the parties have contracted to revise the aforesaid credit facility agreement which is secured, in addition to other collateral, by a pledge on some of the EQY shares owned by the Company, representing the Company’s controlling interest in EQY, whereby the minimum quantity of EQY shares that the Company shall pledge in favor of Leumi has been reduced to 15% of the issued and paid-up share capital of EQY (17% on a fully diluted basis), instead of 20% on a fully diluted basis as prescribed in the original agreement. Once the credit line with Leumi has been reduced, the Company will issue an additional immediate report.
Gazit-Globe, Ltd. Invests NIS 125 Million to Launch Yavne Mall
Aug 30 15
Gazit-Globe, Ltd. is launching the G Yavne shopping mall at an investment of NIS 125 million. The mall contains 10,000 sq.m. of commercial space on three floors, and is expected to house 65 businesses. Rent in the mall will vary from NIS 120 to NIS 250 per sq.m., and revenue is projected to total NIS 16.5 million annually.
Gazit-Globe Announces Management Changes
Aug 24 15
Gazit-Globe announced that Mr. Adi Jemini has been appointed as the company's Chief Financial Officer and as a member of its Executive Committee, effective as of April 1, 2016, following a transition process. Mr. Jemini will succeed Mr. Gil Kotler, who is stepping down as the Company's EVP and CFO after 18 years of service. Mr. Jemini, 37, a Certified Public Accountant, has previously held several senior positions within the company. For the past three years he has served as Chief of Staff to the company's Chairman, Mr. Chaim Katzman. Prior to joining Gazit-Globe, Mr. Jemini served for seven years in a US affiliate of the global accounting firm Deloitte. Mr. Gil Kotler will step down as the Company's Senior Executive VP and Chief Financial Officer on 31 March 2016, after 18 years of dedicated service and following an orderly handover of his responsibilities to Mr. Jemini.