Excellion Capital advises publicly listed Arazim Investments on a £25 million critical debt financing

June 2011

Arazim Investments Limited,the real estate company listed on the Tel-Aviv Stock Exchange (together with its subsidiaries, Arazimor the Company) announce today that it received a signed letter from a leading international investment bank (theBank) on 6 June 2011 confirming that the Bank is highly interested in providing to Arazim, subject to certain conditions, a loan facility.

In accordance with the letter,the Company expects to raiseseniordebtfinancingof c.140 millionIsraeli Shekels (c.£25.05million) net of transactioncostsfrom theBank,whereastheloanwouldbesecured by acomprehensivesecuritypackagecomprisingthevastmajorityoftheCompany’sassetsincluding(a) theCapellaportfolioofassets;(b)sharesinitsmaterialsubsidiaries(includingArazimGibraltar);and(c) a sharepledgeoverall sharesinArazimwhichareheldbytheCompany’s controllingshareholder.

ExcellionCapital is actingas financial advisertothe Companyin relationto theloan.

Theconsummation oftheloan facilityisconditional,amongstotherthings, on theCompanyusing the loanproceedstogetherwithfundscurrentlyheldin theCompany’saccountstosuccessfullyextinguish the bondholderdebtin itsentirety.
TheCompanyalsoannouncedtodayitsproposalfor asettlement offer(theSettlement),pursuantto whichtheCompany would,subjecttotheconsummationoftheloanfacility,paytoitsmajorcreditors (thisbeingall of itsbondholdersas wellastheIsraelitaxauthority)acashamountof 250millionIsraeli ShekelstorepayandextinguishalloftheCompany’s liabilitiesvis-à-visthesecreditors.Simultaneously theSettlementenvisagesthesharesofArazimbeingde-listedfromtheTel-AvivStockExchangesuch that theCompany would, upontheSettlement becomingeffective,ceasetobepubliclylisted.

Arazim’s assets are predominantly commercial realestate concentrated with assets in the UK and Germany.