Israeli airline El Al signs deal for $130m loan

Cash strapped Israeli airline El Al said on Tuesday it signed a non-binding deal for a $130m loan from insurer Phoenix Group. Israel's flag carrier will pay interest of 5.5% to 7% in the loan, in which final details still need to be worked out, it said in a regulatory filing in Tel Aviv. El Al will put up its Matmid frequent flier club as collateral for the loan. Phoenix will have an option to buy 25% of Matmid by the end of 2027. Sales plummeted at El Al amid restrictions imposed during the pandemic to curb the spread of COVID-19. Israel only recently opened its borders to foreign tourists, allowing El Al to narrow its net loss in Q4 to $110m from $140m a year earlier. The loan is part of a government bailout package, in which El Al was forced to lay off one-third if of its workforce and trim its fleet. The state, which gave El Al a $210m aid package last year, also required El Al to inject more cash into the airline, either by selling a stake in Matmid or securing a loan using Matmid as collateral.<br/>