OR YEHUDA, Israel, January 7, 2014 /PRNewswire/ --
Formula Systems (1985) Ltd. (NASDAQ: FORTY), a leading provider of software consulting services, computer-based business solutions and proprietary software products, today announced that it has finalized the terms of a NIS 200 million 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 Corporation owned by Formula.
The loan's average duration is approximately four years (paid over a period of 6 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 finalization of the loan Formula will have zero net debt on a standalone basis.
Mr. Guy Bernstein, Formula's CEO, noted: "This loan reflects the trust and confidence in us and in our plans for the continued development of the group, and will allow us to seek and promote new initiatives that we believe will create value for the shareholders of Formula and its subsidiaries."
Formula Systems (1985) Ltd. is a global information technology company principally engaged, through its public company subsidiaries Matrix, Sapiens Corporation 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.
Except for any historical information contained herein, matters discussed in this press release might include forward-looking statements that involve a number of risks and uncertainties. Regarding any financial statements, actual results might vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both locally and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in Formula's most recent annual report and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Formula Systems (1985) Ltd.
SOURCE Formula Systems (1985) Ltd