July 07, 2008
Plenus Grants Orad a $10mm Credit Facility
Plenus Mezzanine, Israel’s leading Mezzanine fund, granted a $7mm loan plus a $3mm Credit Line to Orad LTD, a publicly traded company (TASE:ORAD) controlled by the Adoram family and Shamrock Holdings.
Orad will use the loan to partially fund the acquisition of AFSK Industries Ltd. (TASE: AFSK). Under the terms of the agreement Plenus has the option to convert the loan into AFSK shares.
Orad designs advanced solutions for the security systems, fire protection, traffic and parking management & communications sectors. The company, which was founded in 1971, is managed by Mr. Ariel Adoram and employs over 350 employees. AFSK designs and manufactures electrical systems (high and low voltage systems), industrial control and safety valves, analytical systems for water& wastes treatment and Fire detection and protection systems.
Shlomo Karako, managing partner at Plenus Mezzanine said that “Orad enjoys a stellar reputation as a leading contractor of large infrastructure projects. We believe that the acquisition will significantly increase Orad capabilities in the electricity domain and will enable the company to maximize the synergies of its diverse activities.”
Amnon Adoram CEO of Orad said that “the fact that Orad has gained funding from Plenus, in times when the market conditions are difficult, serves as a testament to Orad’s capabilities to successfully fund and leverage its business. We believe that the combination if Orad’s and AFSK’s activities will provide a competitive advantage both domestically and abroad.”