Kamtech raises at zero interest | BizPortal

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The Israeli company, which is traded in Israel and on Wall Street and is engaged in the development, production and marketing of systems to improve and streamline the semiconductor industry, reported that it will complete raising debt of convertible bonds, to institutional investors, amounting to $ 175 million and 0% interest. The bonds will mature in 2026. CamTech increased the volume of bond raising from $ 140 million to $ 175 million. In addition, CamTech gave the first buyers the option to purchase additional bonds in the amount of $ 25 million. The raising of zero interest is due to the cheap money in the markets as well as the candy that the company provided to the bondholders – a future conversion option with a premium of 30% on the current share price.

This means for the company is very cheap recruitment. On the one hand, it does not raise debt by issuing shares, so it does not dilute the total existing shares. On the other hand, the company raises the bond at zero interest. In practice, this is equivalent to an option, the bond will be converted into shares only in a few years, on a date when the company will not pay interest on it. The company.

As stated the bonds will not bear interest. The bonds will mature in early December 2026, unless repurchased, redeemed, or converted before that date. For one ordinary share – a premium of about 30% on the price of ordinary shares of CamTech on the American Stock Exchange on the last closing day.

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Prior to the close of trading close to August 1, 2026, it will be possible to convert the bonds. Camtech or a combination of them, according to the company’s decision.

CamTech is not entitled to redeem the debentures before December 6, 2024. On or after that date, CamTech will be entitled to redeem all or part of the debentures in cash, if the last reported sale price of CamTech’s ordinary shares is at least 130% of the conversion price – the difference Between the share price in the period and those $ 58.45 the company will rake in its pocket.

Kamtech estimates that the net proceeds from the offering will be approximately $ 170.1 million, or $ 194.5 million in the event that the first purchasers fully exercise their option to purchase additional bonds. , Investment, research and development as well as product development.

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