Tel Aviv-Israel Chemicals Ltd. said Aug. 7 that it has signed an agreement with a group of 17 banks from Europe, the U.S., and Israel, setting the terms under which they will provide ICL with a fully committed loan of $725 million. The loan is for a period of five years and will be repaid in full at the end of the period. The loan, which will bear interest at a rate of 0.45 percent over LIBOR, will replace an existing borrowing facility of $250 million that was secured in 2005 at an interest rate of 0.60 percent over LIBOR for a period of five years. This borrowing facility will now be repaid ahead of its original maturity in view of the improved terms. In addition, the new loan will support ICL’s financing of its acquisition of Supresta, which is expected to close shortly, while also enabling ICL to take advantage of future growth opportunities. ICL says the loan is the largest by a borrower headquartered in Israel. ICL believes that its success in securing this significant loan at such a low margin, together with the prestige of the large number of international banks participating in the transaction, confirm the strong standing that ICL has achieved in the international financial markets.
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