Doron Sapir (Photo by Sivan Farage)
Ayalon Insurance Company enters the field of non-bank credit. The company made a rather complicated deal of a loan of NIS 20 million to Michman, which will pay interest of 4.9%, and at the same time granted Ayalon options at an exercise price of NIS 2,129. If Ayalon chooses to exercise the options in full, then it will become a stakeholder in Michman with a 5% holding in the company.
According to the agreement between Ayalon and Michman, the loan will be inferior to the Company’s Series A debentures and to the Company’s loan agreements with the banks and its repayment will be inferior to the repayment of the Company’s debentures and the repayment of the Company’s debts to the banks. The loan will bear a fixed interest rate of 4.9% per annum and will be paid at the end of each calendar quarter plus a management fee and other fees as is customary in such agreements.
More in-
The terms of the agreement between the two companies include different terms regarding options. To the extent that the warrants are not exercised during the exercise period by Ayalon Insurance, the interest rate will increase by 4%, starting from the end of the exercise period. To the extent that the warrants are only partially exercised, a partial interest increase will apply, respectively. To the extent that the option is not exercised during the exercise period, the Company will pay, in a one-time payment on the final repayment date, a non-exercise commission option at the rate of 1.9% of the loan principal.
Ayalon Insurance was led by Rona Yosef Abutbul, VP, Director of Investments and Itai Dayan, Director of the Credit Division. The Ayalon Insurance Group was represented by Adv. And solar error.
Doron Sapir, chairman of the company, and Yaniv Bitton, CEO of Michman Credit for Business, said: “The financing agreement allows us to continue our rapid growth, as part of building a strong and professional long-term infrastructure.”
Since the beginning of the year, Michman’s credit portfolio has grown by about 170% and amounted to about NIS 265 million. In November, the volume of the credit portfolio amounted to NIS 300 million, an increase of 206% since the beginning of the year.
Michman says today that the company’s capital resources increased in the first nine months of 2021 to about NIS 292 million, compared to capital sources that amounted to about NIS 101 million in 2020.
The diversification of credit sources, the issuance of bonds and agreements with the banking system led to a reduction in the company’s weighted cost of capital from about 8.5% at the end of 2020 to about 3.98% at the end of the third quarter of the year. It will last.
Comments on the article(0):
Your response has been received and will be published subject to system policies.
Thanks.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment