Sapiens Completes Raising of $60M in Non-Convertible Debenture

Following the transaction, Sapiens has a total net debt of 0 and is profitable and generating positive free cash flow quarter-over-quarter.

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Sapiens International Corporation (Holon Israel), a global provider of software solutions for the insurance industry, has completed the public offering of non-convertible series B debenture and the listing thereof on the Tel-Aviv Stock Exchange, for a sum of approximately $60 million bearing an annual interest rate of 3.37%. Both institutional and private investors participated in the offering.

Roni Al-Dor, President and CEO, Sapiens.

“We are very pleased to have completed the sale of the Series B debentures in Israel,” comments Roni Al-Dor, President and CEO, Sapiens. “The issuance of such debentures reinforces the market’s confidence in our ability to utilize the proceeds from this offering properly and to repay this long-term debt in a timely manner.”

“The proceeds from these debentures will allow us to repay our existing short-term bank loan of $20M, strengthen our balance sheet and liquidity, provide us with additional working capital to support our development needs, and enable us to pursue additional M&A opportunities,” Al-Dor adds.

Following completion of the transaction, Sapiens will have $120 million of available cash on its balance sheet and $120 million of non-convertible debenture spread over the next 5.5 years, with the payments scheduled for January 1st, 2021 through January 1st , 2026. Following the transaction, Sapiens reports that it has a total net debt of 0 and is profitable and generating positive free cash flow quarter-over-quarter.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at or (503) 936-2803.

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