Midroog Ltd. Comments That the Acquisition of Harris Night Vision Business Is Expected to Moderately Slow Elbit Systems' Coverage Ratios, Due to Debt Reducing Steps Taken by Elbit Systems

April 30, 2019 at 4:01 AM EDT
Midroog Ltd. Comments That the Acquisition of Harris Night Vision Business Is Expected to Moderately Slow Elbit Systems' Coverage Ratios, Due to Debt Reducing Steps Taken by Elbit Systems. PDF version.

HAIFA, Israel, April 30, 2019 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or "the Company") announced today that the Israeli rating agency, Midroog Ltd. ("Midroog"), issued a special report issuer comment (the "Issuer Comment"), that the anticipated completion of the transaction underlying the signing of an agreement by the Company's U.S. subsidiary, Elbit Systems of America, to acquire Harris Corporation's Night Vision Business, as announced by the Company on April 5, 2019, (the "Acquisition"), is expected to moderately slow the Company's coverage ratios, due to debt reducing steps taken by the Company including a recent share offering, as announced by the Company on April  9, 2019.

The Series "A" Notes issued by the Company in 2010 and in 2012 (the "Notes"), are currently rated "Aa1" (on a local scale), with negative outlook.

Midroog will continue to examine during a period following the closing of the Acquisition, the impact of the Acquisition on the Company's cash flow and financial results, as well as the Company's overall financial leverage, as a result of the Acquisition as well as the acquisition of IMI Systems, with a reasonable possibility that the Company will recover its coverage ratios in the medium term.  

Midroog's official Issuer Comment in Hebrew, will be submitted to the Israel Securities Authority and the TASE. An unofficial English translation of Midroog's Issuer Comment will be submitted by the Company on Form 6-K to the U.S. Securities and Exchange Commission.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any Notes.

 

About Elbit Systems

Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.

Driven by its agile, collaborative culture, and leveraging Israel’s technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.

Elbit Systems employs over 20,000 people in dozens of countries across five continents. The Company reported as of September 30, 2024 approximately $1.7 billion in revenues and an order backlog of approximately $22.1 billion.

For additional information, visit: https://elbitsystems.com, follow us on Twitter or visit our official Facebook, Youtube and LinkedIn Channels.

Company Contact: 

Dr. Yaacov (Kobi) Kagan, ExecutiveVP – CFO
Tel: +972-77-2946663
kobi.kagan@elbitsystems.com

Daniella L. Finn, VP Investor Relations
Tel: +972 54 4262636
daniella.finn@elbitsystems.com

Dalia Bodinger, VP, Communication & Brand
Tel: 972-77-2947602
dalia.bodinger@elbitsystems.com