CELLCOM
ISRAEL LTD. ANNOUNCES PREPAYMENT OF CREDIT FACILITY AND PRIVATE
OFFERING
OF DEBENTURES IN ISRAEL
Netanya,
Israel – January
27,
2008
– Cellcom
Israel Ltd. (NYSE: CEL) (the "Company") announced that the Company's Board
of
Directors adopted today the following resolutions as to the Company's debt
structure:
(a)
to
make a voluntary prepayment of all outstanding amounts under the term loan
provided under the Company's credit facility from a bank syndicate, in the
aggregate principal amount of US$140 million (comprising of approximately
US$85
million principal amount denominated in US$ and approximately NIS 253 million
principal amount denominated in NIS) and thereafter to cancel the term loan
and
revolving credit facility (under which no outstanding amounts will remain)
and
to terminate the credit facility agreement. Said agreement includes certain
restrictive covenants, including as to maintaining financial ratios and the
distribution of cash dividends by the Company. The prepayment will be made
during March 2008, in accordance with the terms of the credit facility
agreement.
For
details on the Company's credit facility, see "Item 5. Operating and Financial
Review and Prospects – B. Liquidity and Capital Resources – Debt Service –
Credit facility from bank syndicate" of the Company's annual report on Form
20-F
for the year ended December 31, 2006 and our report on Form 6-K filed on
October
25, 2007.
(b)
to
prepare for raising between NIS 250 – 600 million through a private offering of
debentures to be conducted in Israel only, by issuing additional debentures
from
the existing Series C and/or Series D debentures, which are listed on the
Tel
Aviv Stock Exchange, or TASE, subject to the TASE's approval. The additional
debentures will be subject to certain resale restrictions under the Israeli
Securities Laws. At this stage there is no certainty that the Company will
raise
debt and if it does, as to the amount it will raise.
See
our
reports on Form 6-K filed on September 23 and October 1 and 3, 2007, in relation
to the existing debentures.
The
two
resolutions are not interdependent.
The
offering described in this press release, if made, will be made in Israel
to
residents of Israel only. The said debentures, if issued, will be listed
on
TASE, 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.
Forward
looking statement
The
information included in this press release contains, or may be deemed to
contain, forward-looking statements (as defined in the U.S. Private Securities
Litigation Reform Act of 1995 and the Israeli Securities Law,
1968). Said forward-looking statements, relating to the possible
private offering are subject to uncertainties and assumptions, including
market
conditions and our Board of Directors’ decision, which will take into account
all relevant factors and facts as shall be known when making its decision;
the
ultimate results could lead to materially different outcome than those set
forth
above.
About
Cellcom Israel
Cellcom
Israel Ltd., established in 1994, is the leading Israeli cellular provider;
Cellcom Israel provides its 3 million subscribers 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).
For
additional information please visit the Company's website http://investors.ircellcom.co.il
|
Company
Contact
Shiri
Israeli
Investor
Relations Coordinator
investors@cellcom.co.il
Tel:
+972 52 998 9755
|
Investor
Relations Contact
Ehud
Helft / Ed Job
CCGK
Investor Relations
ehud@gkir.com
/ ed.job@ccgir.com
Tel:
(US) 1 866 704 6710 / 1 646 213
1914
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