Israel Chemicals has announced the suspension of planned layoffs at its subsidiary Bromine Compounds. The news comes as the company has raise $800 million in a private bond offering last week.
The company said that it will use the infusion of new capital to repay its short-term loans. This, in turn, will make it easier for Israel Chemicals to borrow more money in the future.
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The bonds offer a coupon of 4.5%, were issued at a price of 99.285% to yield 4.59% and are due 2024. The offering is expected to settle on December 2, 2014, subject to customary closing conditions.
As for the Bromine Compounds, the company reached a deal with workers there after a hearing before Beer Sheva District Labor Court Judge Yael Engelberg-Shoham. The two sides agreed to a 40 day cooling off period while they try to reach a final deal.
Israel Chemicals released a statement saying, “The Court today ordered the Bromine Compounds workers council to halt its sanctions, return to work immediately, and conduct intensive negotiations with management, while maintaining total industrial quiet. As part of the agreements reached in the courthouse, company management has agreed, as a goodwill gesture, to cancel the notices to the workers during the negotiation period. Company management hopes that the time framework allotted by the judge will motivate the workers representatives to cooperate as soon as possible in the company’s recovery.”
