Bank Hapoalim Aids Gilat With New Loan Terms
Bank Hapoalim came to the aid of Gilat Satellite Network Ltd. [GILTF] by modifying the terms of a $71 million loan. The new terms reduce the rate of interest applicable for the loan’s outstanding balance, defer part of the principle payments that are due in 2005 and 2006 to the end of the loan period in 2012, and ease the financial covenants. Bank Hapoalim also will have the right to receive warrants to purchase Gilat’s ordinary shares. The agreement is subject to approval by Gilat’s shareholders at the company’s upcoming April 29 general meeting.