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Issuance of Delta Bonds, April 2012 -
The Precedence Challenge”
At the beginning of April, a month before the
closing of the Schiesser acquisition deal, Delta
completed its bond issuance on the Tel Aviv
Stock Exchange. As part of the issuance, which
was already in high demand at the institutional
funding stage, NIS 193 million was raised. The
success of this issuance, pursuant to the two
successful issuances from the previous bond
series, reflects the investors’ great trust in the
Company’s management and in Delta’s strength.
Yossi Hajaj
Delta CFO: “The bond
issuance is a step designed to raise
long term credit. Although the
short term price of credit is low at
the moment due to the global
crisis, we are of the opinion that the low interest
rates will not stay that way in the long run.
Consequently, we have decided to conduct a
bond issuance and to fix the long term interest
rate at a reasonable level. This is our third
issuance conducted in the past two years, and it
was more complicated than its predecessors,
due to changes in the capital market that were
put into force about a year and a half ago. The
new regulations require financial covenants and
other assurances to bond holders, in order to
ensure the investors’ rights. Delta is one of the
first companies to issue bonds according to the
new Hodak Commission’s regulations; and
despite the difficulty in predicting the outcome,
we were very successful, including in the
negotiations with the institutional investors; and
we have reached very good terms.
Since we are a dollar-based company,
immediately following the shekel bond issuance
we conducted a SWAP transaction with a
banking institution to convert the shekel cash
flow into dollars - and consequently, in financial
Yossi Hajaj
: “
The bond issuance replaces
the short term bank debt with a long
term debt; it strengthens the Company’s
balance sheet structure and supports
Delta’s growth strategy.”
An interview with
Yossi Hajaj
Delta’s CFO, about
the successful Bond issuance, the financial aspects
of the Schiesser acquisition and more.
Delta’s Finance Department
Fields of Activity: Financial Reporting, Book keeping, Internal Control,
budgeting and forecasting (Fin-Pro); Treasury and working with Israeli and
overseas banks; payroll; import and export; fundraising; assistance with
acquisitions; work with tax authorities, Israeli SEC and other authorities;
About 100 employees worldwide. The department employs people in
Israel - at the Tel Aviv headquarters (25 employees), in Carmiel, in Rosh
Ha’ayin; and in other countries such as the U.S., Egypt, Bulgaria, Thailand,
Jordan, China and the UK.
Yossi Hajaj
Delta’s CFO for the past 6 years, 15 years in the Company, explains
the complexity of his work: “Every business activity includes accounting and
financial aspects, as well as legal and tax aspects. As a global company, we
must ensure that things are done properly, with maximum control overseas.”
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