Israeli Supermarket Chain Super-Sol Expected to Raise NIS 5b in Bonds

Unsecured bonds will be issued in two series, with a variety of conditions that could trigger immediate redemption.

Shelly Appelberg
Shelly Appelberg
Send in e-mailSend in e-mail
Shelly Appelberg
Shelly Appelberg

Super-Sol, the supermarket chain owned by Israel’s financially troubled IDB holding group, will seek to raise NIS 5 billion in newly issued bonds.

The company’s board recently authorized the sale of two new series of bonds. While the actual sum to be raised has not been officially decided, company financial documents have revealed that each bond series is expected to raise NIS 2.5 billion each, for a total of NIS 5 billion.

The bonds will not be secured by any collateral but will include restrictive conditions based on the investment prospectus made public by the company. The bonds’ covenants will require, among other things, that Super-Sol’s shareholder capital does not fall below NIS 400 million for two or more consecutive quarters. Likewise, the company may not issue dividends to shareholders, or carry out stock buyback operations if such a move would reduce its shareholder capital to less than NIS 600 million.

The covenants will also contain clauses triggering the immediate early redemption of the bonds. Super-Sol itself will have the right to redeem the bonds early. However, investors will also be able to force an immediate redemption of the bonds if business conditions deteriorate to the extent that repayment is felt to be endangered. The number of events listed as letting investors call for immediate bond redemption include, among others, a company merger or asset sell-off conducted without bondholders’ approval and failure to issue financial reports in a timely fashion.

Super-Sol branch in Tel Aviv.Credit: Dan Keinan

Click the alert icon to follow topics:

Comments

SUBSCRIBERS JOIN THE CONVERSATION FASTER

Automatic approval of subscriber comments.
From $1 for the first month

Already signed up? LOG IN

ICYMI

Charles Lindbergh addressing an America First Committee rally on October 3, 1941.

Ken Burns’ Brilliant ‘The U.S. and the Holocaust’ Has Only One Problem

The projected rise in sea level on a beach in Haifa over the next 30 years.

Facing Rapid Rise in Sea Levels, Israel Could Lose Large Parts of Its Coastline by 2050

Tal Dilian.

As Israel Reins in Its Cyberarms Industry, an Ex-intel Officer Is Building a New Empire

Queen Elizabeth II, King Charles III and a British synagogue.

How the Queen’s Death Changes British Jewry’s Most Distinctive Prayer

Newly appointed Israeli ambassador to Chile, Gil Artzyeli, poses for a group picture alongside Rabbi Yonatan Szewkis, Chilean deputy Helia Molina and Gerardo Gorodischer, during a religious ceremony in a synagogue in Vina del Mar, Chile last week.

Chile Community Leaders 'Horrified' by Treatment of Israeli Envoy

Queen Elizabeth attends a ceremony at Windsor Castle, in June 2021.

Over 120 Countries, but Never Israel: Queen Elizabeth II's Unofficial Boycott