Ratio Oil Exploration (1992) LP (TASE:RATI.L), controlled by Yigal Landau and Ligad Rotlevy, will raise NIS 570 million in its bond offering. The original intention was to raise a smaller amount, $80-100 million. The offering received demand of over NIS 700 million, and closed at a yield of 6.5%. The buyers of the bond also receive warrants, giving a yield of over 7% on the offering: 900 million warrants on participation units in the partnership at a strike price of NIS 0.35 for two years, and 600 million warrants at a strike price of NIS 0.47 for four years.
Completion of the offering paves the way for Ratio to receive bank finance to cover its share in the development of the Leviathan gas reservoir.
Participation units in Ratio have suffered recently from downward pressure because of investors' fears that the bond offering would not reach the amount required to obtain the bank finance. The amount that the company in fact raised yesterday will also enable it to finance development of the Royee reservoir, and should ease pressure on the participation units. Investors were also concerned about further dilution from additional offerings of capital and participation units, but these concerns appear to have been dispelled with the success of the current offering.
The offering was led by Discount Underwriting & Issuing.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2016
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