Magic Signs Definitive Seven-Year Term Loan Agreement
Magic Software Enterprises Ltd. announced today that the Company has obtained a NIS 120 million (approximately $31.5 million) loan from an Israeli institutional corporation
Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that the Company has obtained a NIS 120 million (approximately $31.5 million) loan from an Israeli institutional corporation. After taking the loan, the Company will have total cash of approximately $92.5 million (net cash of ~ $60 million). The proceeds from the loan will be used to support the growth of the Company’s existing business and for potential acquisitions. The unsecured loan is payable in 7 equal annual payments with the final payment due on November 2, 2023 and bears a fixed interest rate of 2.60% per year (unlinked), payable in two semi-annual payments. The loan, which may be prepaid under certain circumstances, is subject to various customary financial covenants and a negative pledge.
“We are pleased to partner with a leading Israeli institution on this financing, taking advantage of the attractive rates that were offered,” stated Asaf Berenstin, CFO of Magic Software Enterprises, Ltd. “Having already spent approximately $21 million this year on the acquisition of Roshtov Software Industries Ltd., this financing will give us the flexibility to further grow our digital transformation business and add value to our shareholders by enriching our solutions for mobile, integration, cloud and IoT, both organically and through additional acquisitions.”
For more information, visit www.magicsoftware.com.
About Magic Software Enterprises
Stephanie Myara | PR Manager
Magic Software Enterprises
Magic has made every effort to ensure that the information contained in this press release is accurate; however, there are no representations or warranties regarding this information, including warranties of merchantability or fitness for a particular purpose. Magic assumes no responsibility for errors or omissions that may occur in this press release. Magic is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.