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 $25-30 million 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.
