Cellcom Israel Announces Preparation For Debt Offering In Israel - Update

NETANYA, Israel, May 10, 2020 /PRNewswire/ -- Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) (the "Company") announced today that following the Company's previously announced potential debt offering in Israel, the Company is in preparations to raise up to NIS 200,000,000 in debentures and options to purchase ordinary shares of the Company, and subject to the completion of the contemplated offering, the Company has accepted early commitments from institutional investors for the purchase of an aggregate of 222,000 units, each comprised of 1,000 debentures Series L and 10 options Series 4, for NIS 906 per unit out of orders for approximately 560 thousand units received in the institutional tender. In consideration for making early commitments, the institutional investors will receive an early commitment commission in the amount of 0.5% of the immediate consideration for the units they undertook to purchase.

In addition, Standard & Poor's Maalot reaffirmed an ilA/negative rating for such potential offering of debentures of up to NIS 222,000,000 principal amount, which the Company may issue.

The execution, timing, terms and amount of such contemplated offering have not yet been determined and are subject to further approval of the Company's Board of Directors, publication of a supplemental offering report and the prior approval of the TASE for the supplemental offering report. There is no assurance that such offering will be executed, nor as to its timing, terms or amount.

For additional details regarding the Company's debentures and the Existing Indenture and the Company's options, see the Company's annual report on Form 20-F for the year ended December 31, 2019 dated March 23, 2020 or the 2019 Annual Report, under "Item 5B. Liquidity and Capital Resources - Debt Service" and " - Issuances of equity securities" and the Company's current reports on Form 6-K dated March 25 and 26, 2020. For additional details regarding the potential offering see the Company's current report on Form 6-K dated May 6, 2020.

The contemplated offering described in this press release will be made, if made, only in Israel and only to residents of Israel. The securities have not been registered under the U.S. Securities Act of 1933 and will not be offered or sold in the United States. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.

A security rating is not a recommendation to buy, sell or hold securities, it may be subject to revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is a leading Israeli communications group, providing a wide range of communications services. Cellcom Israel is the largest Israeli cellular provider, providing its approximately 2.744 million cellular subscribers (as at December 31, 2019) with a broad range of services including cellular telephony, roaming services for tourists in Israel and for its subscribers abroad, text and multimedia messaging, advanced cellular content and data services and other value-added services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an LTE 4 generation network and an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Cellcom Israel further provides OTT TV services, internet infrastructure and connectivity services and international calling services, as well as landline telephone services in Israel. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://investors.cellcom.co.il.

                                Company Contact                           Investor Relations Contact

       Shlomi Fruhling                         
     Ehud Helft

        Chief Financial Officer                   GK Investor & Public Relations  In
                                                   partnership with LHA


        Tel: +972 52 998 9735                   
     Tel: +1 617 418 3096


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SOURCE Cellcom Israel Ltd.