El Al raised NIS 250 million in an options issue to reimburse flight ticket buyers whose flights were canceled

El Al raised NIS 250 million ($ 77 million) in an options issue. Eagles Wings, controlled by Eli Rosenberg, bought options for $ 50 million and institutional investors bought options for $ 27 million. The issue won a demand of NIS 335 million, ie an excess demand of 40%.
El Al, managed by Avigal Sorek, is expected to use the proceeds of the IPO to reimburse flight ticket buyers whose flights were canceled starting in the first half of 2020. El Al received an extension to pay the debt through a temporary provision from July 2020 that amended the Aviation Services Law (Tibi Law).
The offering took place at the request of the Ministry of Finance and the banks as a condition for providing a state guarantee of 82.5% for a loan of $ 300 million, from a group of banks headed by Leumi and Discount for seven years at 5% interest, based on LIBOR interest and additional organization, participation and management fees. . As part of the terms of the loan, Eagles Wings was required to order options in the amount of at least $ 50 million.
The Ministry of Finance requires the company to raise additional capital in the amount of at least $ 50 million by September 2021, in which it will order Eagles' Wings options in the amount of at least $ 25 million. Wings Eagles acquired $ 105 million worth of EL AL shares in an IPO in September 2020. Rosenberg provided a $ 10 million shareholder loan in December 2020 and is expected to inject another $ 75 million by September 2021, bringing its total investment to $ 190 million. Leader Underwriting led the offering