• Business Dilemma:
  The BOT tender, published by the Israeli government, for the Jerusalem Light rail network (Jnet), included taking over the existing Red-Line (14 km 23 stations, 1 depot), an extension of the Red Line (8 km, 12 stations, and one depot), and construction of the new Green-Line (20 km 41 stations and one depot) all while operating and maintaining existing services. TASC assisted an international consortium of a leading Israeli civil engineering company and a Spanish rolling stock and system manufacturer in a bid for the takeover, expansion, operation, and maintenance of Jnet. Following the completion of a 5-year multi-stage construction period, the consortium will be entitled to a 20-year operating and maintenance period. In order to finance over 5B NIS of construction costs a multi-currency financing package of over 3.5B NIS was required

• Process:The Consortium hired TASC’s Finance team to advise on all project stages from bid submission and award up to financial close. Our team built and negotiated a financing plan based on non-recourse project financing for the entire project term. The final financing agreement included both NIS and EU multiple tranches totaling over 3.5B NIS and was fully committed by Israel’s largest bank along with Israeli institutional investors, and additional banks.

• Strategic Solution & Impact:
  The consortium was awarded the concession after a competitive bid in Q4 2019 and financial close was reached on schedule in Q4 2020, construction works are ongoing and TASC continues to support our clients in project implementation

For more information: Tom Maurice, Tom.Maurice@dev.tasc-consulting.com

• Business Dilemma:
  Our team was asked to advise a group of private-equity funds in a tender for the purchase of a controlling stake in Israel’s telecom market leader, which was facing a rapidly changing market

• Process:
  Our team reviewed the Israeli telecommunication market – fixed telephony (local & intl.), cellular communications, datacom, pay-TV and Internet – creating projections for developments in each market, including the deregulation of key market components.Using the market projections, TASC consultants designed and built a complex DCF financial valuation model that allowed investors to assess the impact of the changing trends in the various markets in which the company operated.After structuring a bid strategy exploiting the investors’ relative strengths, our team assisted the group in negotiations with the seller.

• Strategic solution & impact:
  Based on TASC’s market company analysis our clients submitted the winning bid for the tender and gained control of the company.

For more information :  Ilan Schory, Ilan.Schory@dev.tasc-consulting.com

• Business Dilemma:
  TASC was commissioned by a consortium of five lenders to value the company’s equity, which was being used as collateral for debt provided by the lenders in connection with the company’s acquisition

• Process:
  The process included a review of market trends in the company’s various business segments, focused on the increase in competition post reduction of import tariffs and the entry of “private label” brands to the market.Also, an evaluation of the Company’s business plan and financial status was undertaken, validating the ability to meet its 5-year business plan.From this, a financial model was constructed evaluating various scenarios for the company’s expected cash flow. Alongside this, a determination of the company’s weighted average cost of capital (WACC) was performed and a final valuation was determined.

• Strategic Solution & Impact:
  Examination of the company’s value showed various gaps in the securities offered to the lenders. Accordingly, the financing plan was altered by the lenders.

For more information: Yarden Shtrozman, Yarden.Shtrozman@dev.tasc-consulting.com

• Business Dilemma:
  Our client had purchased a large holding of IDBD’s bonds when the company was facing a severe business downturn that led to a forced debt restructuring and change in control.Our team was commissioned to help maximize the value of our client’s holdings throughout the debt restructuring process.

• Process:
  The process included multiple valuations of each of IDBD’s holdings (Cellcom, Shufersal, Israir, etc.) based on market multiple analysis and DCF projections aimed at assessing both IDBD’s ability to service its debt and the value of such debt under various restructuring options.Our team also advised on the negotiations for debt restructuring and submitted various reports and financial opinions to the courts and bondholders’ committees.

• Strategic Solution & Impact:
  An agreement for a new debt structure was signed with the new IDB Group owner and our client’s bond value increased dramatically.

For more information: Daniel Zinger, Daniel.Zinger@dev.tasc-consulting.com

• Business Dilemma:
  A consortium led by S&B wanted to win a BOT tender published bythe government of Israel for the design, construction, financing and operation of a large scale CSP plant in southern Israel.

• Process:Our team was commissioned to advise on all financial aspects of the project including:- Structuring the consortium- Formulating a tender strategy- Formulating a business and financing plan for the project- Negotiations with the tender committee aimed at increasing our client’s chance of winning

  – Securing over NIS 3bn of debt including local, offshore, commercial and multilateral debt in three currencies

  – Negotiating and closing financing for the project

  – Consulting during the construction period

• Strategic Solution & Impact:
  The S&B consortium won the tender and closed on financing; the plan began operation in late 2018.

For more information : Tom Maurice, Tom.Maurice@dev.tasc-consulting.com

• Business Dilemma:
  ZIM, Israel’s largest shipping company, had defaulted on its debt as part of the shipping market downturn following the 2008 financial crisis. Our team was commissioned by local Israeli institutional lenders to consult in the negotiations over the refinancing of the company’s non-bank debt with the aim of recovering a maximum portion of their debt.

• Process:
  An analysis of Zim’s existing debt structure and the company’s ability to service it in light of the expected market situation was carried out, including construction of a demand model for the company’s core activities and a financial model examining possible debt-recovery scenarios.Our team advised the bondholders in the tri-party negotiations with the company and its bank lenders with the goal of maximizing our client’s debt recovery.

• Strategic Solution & Impact:
  A new debt structure with revised division of collateral and securities was achieved allowing the company to continue independent operations and the lenders to recover their debt.

For more information : Daniel Zinger, Daniel.Zinger@dev.tasc-consulting.com

• Business Dilemma:
  The Israeli government through its various branches often employs a BOT/PFI procurement method for large-scale projects involving the private sector. These projects require the construction of detailed and intricate tenders and close management to achieve national interests.

• Process:
  TASC provided full financial advisory services to the government throughout all stages of these procurement process including:- Determining possible methods for execution of projects- Defining the optimal tender strategy- Formulating project risk matrix and defining the various parties’ risk allocation- Designing the financial aspects of the tender and allowing the private sector to raise financing- Negotiating with bidders in the tender process

  – Examining bids and selecting the preferred bidder

  – Consulting during closing of the financing and adapting the concession if required

  – Negotiating final agreements with the concessionaire and lenders

• Strategic Solution & Impact:
  TASC helped both the Israeli government and governments abroad in procuring large-scale infrastructure projects including power stations, roads, rail projects, desalination plants, and public housing.

For more information : Daniel Zinger, Daniel.Zinger@dev.tasc-consulting.com

• Business Dilemma:
  Facing reduced refining margins and a burdensome debt-repayment schedule brought on by heavy investments, Israel’s leading refinery needed to restructure its debt profile.

• Process:
  Our team reviewed the existing debt profile and client business plan to understand the key discrepancies between the two. We adjusted the business plan where needed to match market expectations and assumptions.Based on the revised business plan, a new debt profile was structured to match the client’s repayment abilities and capital needs for continued operations.Our team assisted the client in presenting the new required debt structure to lenders and assisted management with negotiations to secure the required debt and credit facilities.
• Strategic Solution & Impact:
  New credit facilities were secured and existing debt was altered to best suit the client needs allowing him to continue normal operations

For more information : Salco Kleerekoper, Salco.Kleerekoper@dev.tasc-consulting.com

• Business Dilemma:
  JAFI, a company for the benefit of the Jewish people that owns various properties in Israel including several public-housing projects, wanted to develop more than 2,650 new public housing units to ease the lack of public government housing in the country.

• Process:
  Our team assisted JAFI in developing the project from concept to construction including:- Advisory in presenting the project to the state and negotiating a long-term agreement with the relevant government ministries- Developing the project’s financial and commercial model- Developing a financing plan based on long-term non-recourse lending- A comprehensive road show to Israel’s leading lenders- Negotiating with financiers to achieve an optimal debt structure and financial terms

  – Managing the financial-close process including solving many problems associated with a first-of-its-kind project (tailor-made hedging, multiple-location securities issue, tranche debt for various items, and more)

• Strategic Solution & Impact:
  Financial closing of more than NIS 500m was reached in 2017 with project construction in the various locations extending over five years. The first units are expected to become available to the target public by 2019.

For more information : Daniel Zinger, Daniel.Zinger@dev.tasc-consulting.com