Formula Systems (1985) Ltd. (NASDAQ: FORTY) said it has finalised the terms of a NIS 200m loan to be extended to it by a leading Israeli institutional investor.
The loan will be secured by certain of the shares of each of Formula´s publicly held subsidiaries Magic Software Enterprises, Matrix I.T and Sapiens International Corp. owned by Formula.
The loan´s average duration is approximately four years and carries a fixed annual interest rate of 5.5%. The company intends to use the loan proceeds to promote new investments as well as for the continued investment in its foregoing three subsidiaries, all in accordance with its growth and business development strategies. Following the finalisation of the loan Formula will have zero net debt on a standalone basis.
Formula Systems (1985) Ltd. is a global information technology company principally engaged, through its public company subsidiaries Matrix, Sapiens Corp. and Magic Software, in providing software consulting services, developing proprietary software products, and providing computer-based business solutions. For more information, visit http://www.formulasystems.com.