Spacecom raising NIS 800m in bonds on TASE

David Pollack

The company is securing the bonds with a lien on the Amos 6 satellite and its assets.

Satellites company Spacecom Satellite Communications Ltd. (TASE:SCC) is taking advantage of the positive sentiment towards it in recent days, today publishing a revision of a shelf prospectus and carrying out the institutional part of an NIS 800 million bond issue.

Part of the Eurocom Group, controlled by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) controlling shareholder Shaul Elovitch, the company began promoting its bond issue in late August. The issue offers two series at fixed interest, one shekel-denominated and one dollar-linked. The company is securing the bonds with a lien on the Amos 6 satellite and its assets.

The Amos 6, which is expected to replace the Amos 2 telecommunications satellite, made headlines earlier this week when it was learned that Facebook would use it for one of its main ventures in the coming years - hooking sub-Saharan African countries up to the Internet.

Spacecom expects to make $95 million on this project over 5-7 years, and CEO David Pollack said this week, "Since the planned lifespan of the Amos 6 is 15 years, I estimate that it will be possible to triple this amount, while at the same time gaining a foothold in Facebook for future deals."

The Spacecom share price responded positively to the revised prospectus, completing a 15% jump in three days and raising its market cap to NIS 1.15 billion.

Bonuses for senior managers

While the bond issue is taking place, Spacecom shareholders approved bonuses for the company's CEO and vice presidents if a deal for the company's merger or acquisition, which has been discussed in recent months, is completed.

Among other things, retention bonuses of NIS 2 million for Pollack and NIS 3.3 million for deputy CEO Itzhak Shnaiberg were approved, and retention bonuses for company VPs in the event the company is sold were revised.

Published by Globes [online], Israel business news - www.globes-online.com - on October 8, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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David Pollack
David Pollack
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