Israir considers convertible bond issue to fund A320 purchase

Israir Group is to consider raising debt through issuing convertible bonds, to assist with financing the purchase of an Airbus A320. The Tel Aviv-based operator has entered a tentative agreement – through a letter of intent – to purchase the jet from one of its lessors, after receiving a proposal to buy it after the lease expires this year. Israir Group estimates the value of the transaction at $25-30m and the company’s management is looking into options to finance the agreement. It says the acquisition is an opportunity to improve the carrier’s earnings and cash-flow over the course of 2024. The company has detailed the possible bond issue in a draft document. This document lists a February 2030 maturity date for the unsecured bonds, which will have a 5% interest rate, and states that bonds with a face value of 2.3 shekels ($0.63) will be convertible into a single company share.<br/>