Israel Military Industries Ltd. (IMI) subsidiary Ashot Ashkelon Industries Ltd. (TASE: ASHO) successfully completed the institutional tender of its bond issue. The company raised NIS 64 million of the planned NIS 80 million bond issue. The institutional tender amounts to 80% of the total bond offering. The tender was 2.5-fold oversubscribed, as 57 investment institutions placed orders totaling NIS 150 million.
Midgroog Ltd. rated the bonds Baa1.
Ashot Ashkelon’s board, chaired by IMI CEO Avi Felder, decided to raise NIS 80 million in bonds, which will be listed for trading on the Tel Aviv Stock Exchange (TASE). Proceeds will be used for investing in working capital and further expanding business. The company’s activity has grown 40% over the past three years, reaching NIS 233 million in 2006.
Analyst Underwriting And Issuing Ltd. led the issue, together with Altshuler Shacham Management Underwriters & Investments Ltd., Apex Underwriting & Issue Management Ltd., Clal Finance Underwriting Ltd., Leader Underwriters (1993) Ltd., PR Capital Markets Ltd., and Ubank Underwriting And Consulting Ltd.
IMI owns 87% of Ashot Ashkelon, which manufactures aerospace products, tanks and heavy vehicles, and other items. The company posted a profit of NIS 5 million in 2006 after losing NIS 23 million in 2004-05.
Published by Globes [online], Israel business news - www.globes.co.il - on June 3, 2007
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