Gilat Satellite Networks has secured commitments from Israeli institutional investors for approximately $100 million of five-year convertible senior unsecured notes, providing additional capital for satellite, space, mobility and defense technology investments.
The private placement is expected to generate approximately $100 million in gross proceeds before fees and expenses.
Gilat plans to use the proceeds for general corporate purposes, with particular emphasis on next-generation space technologies, multi-orbit connectivity, advanced ground systems, mobility and defense capabilities.
The notes will carry a 3.75% annual interest rate and mature on September 1, 2031 unless converted or redeemed earlier.
Interest will initially be payable annually beginning September 1, 2027.
If Gilat’s Nasdaq share price does not average at least $15 for a consecutive 30-day period ending 18 months after issuance, the interest rate will increase by 1.25 percentage points from that measurement date.
The conversion price has been established at $16 per ordinary share.
That represents an approximately 60% premium to Gilat’s August 28 Nasdaq closing price of $9.94.
Beginning September 1, 2027, Gilat may force conversion under specified circumstances if its shares trade at or above $20 for 10 consecutive trading days.
The transaction does not include financial maintenance covenants and is expected to close September 1, subject to customary conditions.
The private placement is being conducted solely in Israel and is not being offered to U.S. persons.
Gilat’s broader portfolio includes satellite ground systems, electronically steered antennas, satellite-on-the-move products, amplifiers, software-defined platforms and defense communications technology.
KEY QUOTE:
“This financing further strengthens Gilat’s financial flexibility and provides us with additional capital to accelerate investment in the technologies shaping the future of space and satellite communication.”
Adi Sfadia, CEO Of Gilat Satellite Networks
