White & Case Advises Israel’s B Communications on Innovative Debut High Yield Bond Offering
Global law firm White & Case LLP has advised B Communications Ltd. on its innovative debut US$800 million high yield bond offering, the first internationally marketed high yield bond to be listed on the Tel Aviv Stock Exchange.
The principal asset of NASDAQ-listed B Communications is the controlling stake in the publically-listed Bezeq, Israel's largest telecommunications provider.
London-based White & Case capital markets partner David Becker said: "We were very pleased to support our client in the successful completion of this landmark transaction, which has the potential to open the door for other Israeli corporates to issue high yield bonds to international investors directly from an Israeli issuer."
Partner Rob Mathews, the Firm's Regional Section Head, EMEA Capital Markets, said: "This deal continues the strong start to the year White & Case has made in the European high yield market. In February alone we will also close successful high yield issuances in the UK, Poland, Italy and the Czech Republic, among others."
The B Communications bonds were listed on the TACT Institutional platform of the Tel Aviv Stock Exchange. A unique ‘lock-box' structure was used in lieu of the customary restricted payments covenant to account for the company's primary assets and cash flow structure, and the bonds are secured by a pledge over B Communications' 30 percent interest in Bezeq.
JP Morgan acted as sole global coordinator on the transaction with JP Morgan, Citi, HSBC and Discount Bank acting as bookrunners.
White & Case worked closely with the company's long standing Israeli counsel Fischer Behar Chen Well Orion & Co and with Carter Ledyard & Milburn. The initial purchasers were advised by Latham & Watkins and Israeli counsel Yigal Arnon & Co. Hogan Lovells advised trustee and security agent Mishmeret Trust Company Ltd.
The White & Case team included partners David Becker, Joshua Kiernan, Rob Mathews and David Barwise with support from associates Michael Lee, Eduardo Barrachina and Matthew Danforth.
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