NETANYA, Israel, September 23 /PRNewswire-FirstCall/ -- Cellcom Israel Ltd. announced that further to its announcement on September 11, 2007 of the filing of a confidential draft of a prospectus, the Company filed today a final prospectus ("Prospectus") for the offering ("Offering") of two series of debentures, Series C and Series D ("Debentures") with the Israeli Securities Authority and the Tel Aviv Stock Exchange ("TASE"). The Prospectus was filed after the Company received today a permit from the Israeli Securities Authority for the publication of the Prospectus. The Company also received the approval of the TASE for the Prospectus and that the terms of the Debentures as set forth in the Prospectus comply with the TASE's regulations. The listing of the Debentures on the TASE is subject to a listing approval by the TASE, expected to be granted upon the publication of the complete terms of the offering.
The Debentures offered are in an aggregate principal amount of up to NIS 850 million for both Series C and Series D.
Each series of Debentures will bear interest at an annual rate to be determined pursuant to a tender, which shall not exceed 4.7% per year for Series C and 5.7% per year for Series D, linked to the Israeli Consumer Price Index.
The principal of Series C debentures is repayable in nine semiannual payments commencing March 2009, and the interest is repayable semiannually commencing March 2008. The principal of Series D Debentures is repayable in five annual payments commencing July 2013, and the interest is repayable annually commencing July 2008.
The amount of Debentures offered and the maximum interest rate for each series set out above, may be changed in accordance with the Israeli securities regulations and/or as described the Prospectus during the Offering.
The Company may cancel the Offering if requests to purchase the Debentures do not reach a minimal amount of NIS 600,000,000, all subject to the Company's right to change the terms of the Offering, as aforementioned.
The Debentures will be unsecured and will not restrict the Company's ability to issue additional debentures of any class or distribute dividends in the future. The Debentures contain standard terms and conditions.
The Company intends to use the proceeds of the Offering for general corporate purposes, which may include financing of the Company's operating and investment activity including the financing of handset subsidies and other costs related to acquisition and retention of customers, among other things, in anticipation of the upcoming implementation of number portability and repayment of outstanding debt under the Company's credit facility.
The offering described in this press release, will be made in Israel to residents of Israel only. The said debentures will not be registered under the U.S. Securities Act of 1933 and will not be offered or sold in the United States. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any debentures.
About Cellcom Israel
Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its 2.960 million subscribers (as at June 2007) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an HSDPA 3.5 Generation network enabling the fastest high speed content transmission available in the world, in addition to GSM/GPRS/EDGE and TDMA networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Through its broad customer service network Cellcom Israel offers its customers technical support, account information, direct to the door parcel services, internet and fax services, dedicated centers for the hearing impaired, etc. In April 2006 Cellcom Israel, through Cellcom Fixed Line Communications L.P., a limited partnership wholly-owned by Cellcom Israel, became the first cellular operator to be granted a special general license for the provision of landline telephone communication services in Israel, in addition to data communication services. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL).
Company Contact
Shiri Israeli
Investor Relations Coordinator
