Skyline delays TASE issue after bank pulls financing

Gil Blutrich Photo: PR
Gil Blutrich Photo: PR

A payment on Skyline's bank loan has been postponed for the second time, this time until September.

Skyline International Development Inc. (TASE: SKLN), controlled by chairman and president businessman Gil Blutrich, notified investment institutions yesterday that it was postponing its bond issue, scheduled for today, until Sunday.

"Globes" reported yesterday that the bank that has been financing the project, which will be encumbered in favor of the bondholders, will not continue to finance it, and has granted a postponement in the payment on its loan from April until September. The proceeds from the offering were earmarked for repayment of the bank loan, which has now been postponed for the second time.

In a previous announcement to the Tel Aviv Stock Exchange (TASE) on Wednesday, the company reported that it had obtained financing for a different part of the project slated for development, a large proportion of which had already been sold to final customers. The bondholders will have no lien on this part of the project.

The terms of the bond issue have not been changed, except for the request by one investment institution for a deed of trust, according to which the movable assets of the Canadian vacation resort will also be encumbered in favor of the bondholders.

The bond proceeds are intended for making 11 biannual payment on the principal of the bank loan (2.5% of the amount to be raised) in July and January in 2017-2022, starting in mid-July 2017. The remainder of the principal is due for repayment in a single payment in January 2023.

The maximum interest in the bond issue tender is 5.75%, reflecting a 5.96% maximum yield (assuming the maximum interest rate) and an effective profit of 5.19%.

The company declined to respond to both this and the earlier report.

Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Gil Blutrich Photo: PR
Gil Blutrich Photo: PR
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