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Administradora de Fondos de Pensiones Provida S.A. Message Board

artif 2 posts  |  Last Activity: Jan 29, 2015 10:01 AM Member since: Dec 1, 1997
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  • The amended offer is as follows:
    to exchange every NIS 1 principal amount of the Company's series D debentures, up to an aggregate principal amount of approximately NIS 1,023 million (instead of the original amount of NIS 293 million), for NIS 1.52 (instead of the original amount of NIS 1.45) principal amount of new debentures of the Company's existing series H debentures; and
    to exchange every NIS 1 principal amount of the Company's series E debentures, up to an aggregate principal amount of approximately NIS 439 million (instead of the original amount of NIS 130 million), for NIS 1.23 (instead of the original amount of NIS 1.16) principal amount of new debentures of the Company's existing series I debentures.

    How is this not a gift to debenture holders at the expense of the company which will now carry a larger
    debt load? For example, isn't series D debt increasing from NIS 1023 million to NIS 1555 million (1023 times
    1.52)? It looks like the company now owes 532 million extra sheckels or $133 million dollars for the series D
    debentures, and $25 million for the series E. Explain to me if I'm misinterpreting this.

  • to exchange every NIS 1 principal amount of the Company's series D debentures, up to an aggregate principal amount of NIS 293,000,000, for NIS 1.45 principal amount of new debentures of the Company's existing series H debentures; and
    to exchange every NIS 1 principal amount of the Company's series E debentures, up to an aggregate principal amount of NIS 130,000,000, for NIS 1.16 principal amount of new debentures of the Company's existing series I debentures.
    This seems to increase the face amount of CEL's debt. I thought that just recently they refinanced
    easily at low interest rates. So, is this an inside job to benefit connected-debenture holders at the expense of
    anonymous stock/bag holders? I don't know enough to be sure.

    Holders of series D and E debentures will be able to accept such exchange offer until February 2, 2015.

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