According to the agreement, the loan to Teda will be repaid or converted into shares in Trepilog in the event of an exit in the company.
Tadaa, Teda Company announces today the completion of the merger between Safride and Trefilog.
For the purpose of financing the subsidiary’s operations, a loan will be granted from some of Trefilog’s shareholders, including Teda, up to a total of approximately $ 10 million.
The following are the main points of the loan agreement:
Tadaa undertakes to provide Trilog with loans in the aggregate amount of up to approximately $ 1 million from the loan ceiling, with half of the amount set after the completion of the transaction (subject to the approval of the banks providing credit for Trilog) and the balance after approximately 12 months.
Tene Foundation, Which controls Trefilog, will be the main lender and its share of the loan balance will exceed about 70%.
Tada is entitled to a one-time allotment fee in respect of any balance of the amount of a commitment that will not be utilized until the end of the loan provision period, at a rate of 20% on the unutilized portion of the obligation.
The loan (principal and interest) will be repaid or converted into shares in Trapilog in the event of an exit to the company.
In the event of the sale of Trepilog, the loan will be repaid in cash.
In the event of the issuance of Trepilog shares to the public or the completion of a substantial amount of capital raising, the loan will be repaid by conversion into Trefilog shares or in cash.
In the event that the company has made an exit, the interest on the amount of the loan that will actually be made will be determined according to the value of the exit event and in accordance with the steps set out in the loan agreement. As long as the company has not made an exit, approximately 4 years from the date of completion of the transaction, the Tene Fund will have the right to demand repayment of the loan or decide to change the terms of the loan and repayment method according to the alternatives set forth in the agreement.
Keren Tene, the largest shareholder in Trefilog, is the main lender.
Keren Tene will serve as the representative of the lenders (ie as a representative of Teda and any other shareholder in the loan parcel that participates in the loan) and will have the exclusive authority to represent them, at Keren Tena’s sole discretion, in any matter related to the loan.
Tada is entitled to a one-time allotment fee in respect of any balance of the amount of a commitment that will not be utilized until the end of the loan provision period, at a rate determined as a derivative of the unutilized portion of the obligation.
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