Tuesday, April 28, 2009

Israel Chemicals Sells Bonds Worth $164 Million

. Tuesday, April 28, 2009

By stockOzone team

Israel Chemicals (ICL) (ICL.TA), a maker of fertilisers and specialty chemicals, said on Tuesday it placed 695 million shekels ($164 million) worth of its debentures with institutional investors.

The debentures are rated "AA+/Stable" by Standard & Poor's Maalot.

Proceeds from the sale could be used for mergers and acquisitions, among other things, ICL said.

Demand for the bonds was strong, with 1.5 billion shekels in subscriptions, which prompted ICL to increase the size of the offering beyond the original amount of 500 million shekels.

The placement consists of three tranches of debentures: 182 million shekels linked to the dollar and redeemable at 4.5 years; 452 million linked to the consumer price index redeemable at five years; and 61 million nominal shekels redeemable at 4.5 years.

ICL said it intended to register the debentures for trading on the Tel Aviv Stock Exchange in the near future.

After registration, the dollar-linked tranche will bear variable interest of six months Libor plus 2.4 percent, the CPI-linked tranche 3.4 percent and the nominal shekel tranche 5.25 percent.

Until registration, all debentures will bear additional interest of 0.5 percent. ($1 = 4.25 shekels)

Disclosure: Author does not own any of the stocks discussed here.

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