Sources inform ''Globes'' that drug development company Kamada Ltd. (TASE: KMDA) will make a public offering of convertible bonds. The bonds can be converted to shares at NIS 35 per share, 25% above today's opening price of NIS 27.92.
The bonds' conversion price will rise to NIS 35.80 after three years. Kamada announced the planned offering on September 17.
The bonds will bear variable interest of 6.1% above the rate corresponding government variable rate bond Series 0817. The interest will be paid in quarterly payments on December 1, March 1, June 1, and September 1. The yield to maturity will be 8.27%, assuming that the interest rate on the Bond Series 0817 is 1.69% and there is advanced commitment fee of 1%.
Kamada will pay the principal on the bonds in three installments. The first installment of 20% of the principle will be paid on December 1, 2013. The second and third installment, of 40% of the principle each, will be paid on December 1, 2014 and December 1, 2015. The bonds' duration is 4.4 years.
Kamada is developing treatments of bronchial and pulmonary diseases. It is currently selling 10 products in 15 countries. Annual sales amount to about $15 million, and its cumulative sales to date total $200 million. The company had NIS 92 million in shareholders' equity at the end of June. The bond offering is aimed at boosting the shareholders' equity.
Kamada's share rose 4.6% by early afternoon to NIS 29.19, giving a market cap of NIS 636 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 30, 2009
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