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A busy day for Scope


From: Ma'ariv - 20 September 2005

A busy day for Scope: An A rating, an agreement with Clal Insurance and a USD 38 million aluminum purchasing agreement.

Scope Metals Trading and Technical Services Limited. has been busy. In addition to receiving the A ranking for a NIS 50 million capital raise, the company reported a loan agreement for the same amount with Clal Insurance. At the same time, Scope reported a new aluminum purchase agreement valued at USD 38 million.

Maalot, the Israel securities rating company, says that despite fluctuations in aluminum prices, Scope is still a very stable company in the industry. Scope was given an A ranking for the NIS 50 million bonds that it intends to raise.

Clal Insurance has granted a seven-year loan to Scope with an interest rate of 3.95%, to be repaid in quarterly installments between September 2005 and September 2011. In addition, Scope will issue 600,000 convertible options with an exercise price of NIS 64.43, 25% higher than yesterday’s closing share price. According to the agreement, Clal will be able to realize the options in an unlimited number of times during each trading day, except between the 12th and the 16th of each month.

As regards to the aluminum purchasing agreement, between November 2005 and December 2006 Scope will purchase semi-finished products, to an estimated value of USD 38 million, from the aluminum mill. The aluminum products are designated for local customers, as well as for overseas subsidiaries and customers worldwide. The total value of the agreement is derived from aluminum prices in the LME.