Degrees Download Rating For Norstar | BizPortal

In the background is the 1.3 billion shekels that the income-producing real estate company will pay

Gazit Globe






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For the acquisition of 25% of the public in the subsidiary Atrium for its delisting, the parent company








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Receives a downgrade from the Maalot rating company, from the level of ilA-ilA-1 under the watchlist with negative consequences, which was previously there, to the level of ilA-ilA-2. Norstar’s unsecured bonds have been downgraded from il-A to il-A.

Although in terms of financial performance Maalot expects that in the next 12 months the situation will be similar (“high volume of activity and diverse geographical spread”), the change of course due to the payment is in the financial profile – since NIS 1.3 billion (before special dividend) is deducted from the fund. The consideration will be adjusted for a special dividend of 0.6 euros per share to be distributed by Atrium, in a total amount of approximately 240 million euros (approximately 830 million shekels).

And while cash is declining, commitments remain – so the ratio between them actually increases, that is, leverage. “We anticipate that there will be an increase in the company’s leverage to about 72% in the years 2022-2023, higher than the level appropriate to the previous rating. This, along with the EBITDA ratio for financing expenses of 1.4-1.6, is appropriate for the new rating,” Maalot writes. And what was this relationship like before the deal? 70.9% and 1.9, respectively, in 2020.

The rating company also estimated that “Norstar’s liquidity remains adequate, based on our estimate that the ratio between the company’s sources (solo) and its uses will exceed 1.2 in 2022. Our estimate is supported by the company’s cash volume and cash value (estimated at over NIS 190 million ), In the large volume of signed credit facilities that it holds over time (with a available balance for utilization in an estimated amount of NIS 275 million) and in receiving dividends from the subsidiary Gazit Globe in accordance with its policy, in relation to the annual bonds (approximately NIS 150 million this year) and payments Dividends in accordance with company policy. ”

Gazit Globe responded: “Atrium’s deal supports Gazit’s strategy of becoming a fully owned operating company, as this move brings Gazit closer to Atrium’s assets and allows it full group flexibility in operating assets, building and developing existing assets, cash flows and financing options. For example, we add to Gazit Solo about NIS 7 billion of unencumbered assets in direct ownership and full ownership of Gazit, as well as cash in the amount of about 484 million euros, about NIS 1.7 billion. “This is also reflected in Maalot’s report. We will continue to implement Atrium’s program for recycling and improving the asset portfolio and increase the rate of non-core asset sales, which will contribute to lowering leverage and reaching our leverage target of 50%, which will return us the higher rating.”

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