Gilat Announces $100 Million Five-Year Convertible Notes at 60% Conversion Premium
Rhea-AI Summary
Gilat Satellite Networks (NASDAQ/TASE: GILT) has secured commitments from Israeli institutional investors for a private placement of $100 million senior unsecured convertible notes bearing 3.75% annual interest and maturing on September 1, 2031, with no financial maintenance covenants.
The notes are convertible into ordinary shares at $16.00 per share, a ~60% premium to the $9.94 Nasdaq price on August 28, 2026. Gilat may force conversion after September 1, 2027 if the share price is at least $20.00 for 10 consecutive trading days. The interest rate increases by 1.25% if the share price condition of $15.00 is not met by the 18‑month measurement date. Proceeds are intended mainly to accelerate investments in next‑generation satellite and space technologies and related strategic initiatives. The offering, made only in Israel under Regulation S, is expected to close on September 1, 2026.
Positive
- $100 million long-term capital via senior unsecured convertible notes maturing 2031
- Conversion price set at $16.00, a ~60% premium to the $9.94 reference price
- Initial annual coupon of 3.75% with no financial maintenance covenants
- Proceeds earmarked to accelerate investment in next-generation satellite and space technologies
Negative
- Issuance of $100 million senior unsecured notes increases Gilat’s debt obligations through 2031
- Potential shareholder dilution if notes convert at the $16.00 conversion price
- Coupon could step up by 1.25% if share price condition of $15.00 is not met by the 18‑month measurement date
News Explained
The expected $100 million financing adds senior debt and creates potential future ownership dilution if the notes convert into shares.
Gilat has accepted commitments for approximately
Conversion at
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 17 | Peru contract | Positive | -2.3% | $14 million broadband agreement was followed by a -2.26% 24-hour reaction. |
| Aug 06 | AI technology demonstration | Positive | -2.8% | AI interference technology demonstration was followed by a -2.84% 24-hour reaction. |
| Aug 05 | Second-quarter earnings | Positive | -2.4% | Q2 revenue and non-GAAP earnings growth was followed by a -2.43% reaction. |
| Jul 30 | Investor conference presentations | Neutral | +5.2% | Two August investor presentations were followed by a 5.16% 24-hour reaction. |
| Jul 16 | Earnings release scheduling | Neutral | -5.7% | Q2 results announcement scheduling was followed by a -5.66% reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Four of five recent news events had negative 24-hour reactions, including contract, technology, and earnings announcements.
Key Terms
convertible notes financial
senior unsecured financing financial
private placement financial
regulation s regulatory
deed of trust financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Transaction provides long-term financial flexibility to accelerate investments in space technologies and additional strategic opportunities
PETAH TIKVA, Israel, Aug. 31, 2026 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) (“Gilat” or the “Company”), a worldwide leader in satellite networking technology, solutions, and services, announced today that it has received and accepted commitments from Israeli institutional investors, as defined under Israel’s Securities Law, 5728-1968 (the “Investors”), to participate in a private placement (the “Private Placement”) of convertible notes issued by the Company (the “Notes”). Subject to the terms and conditions of the Notes, the Notes will be convertible into ordinary shares, par value NIS 0.20 per share, of the Company (the “Ordinary Shares”).
The gross proceeds from the sale of the Notes are expected to be approximately
“This financing further strengthens Gilat’s financial flexibility and provides us with additional capital to accelerate investment in the technologies shaping the future of space and satellite communication,” said Adi Sfadia, Gilat’s CEO. “We see significant opportunities across innovative space technologies and multi-orbit connectivity, advanced ground technologies, mobility and defense. This additional capital enhances our ability to invest organically, expand our technology portfolio and pursue opportunities that can broaden our capabilities and addressable markets.”
The conversion price will be
The Notes will be senior unsecured obligations of Gilat and will bear interest at a rate of
The Private Placement is expected to close on September 1, 2026 (the date of the closing, the “Closing”), subject to the satisfaction of customary closing conditions.
The Private Placement is being made only in Israel and is not being made to U.S. persons, as defined in Rule 902 of the U.S. Securities Act of 1933, as amended (the “Securities Act”), pursuant to a registration exemption afforded by Regulation S promulgated under the Securities Act. During the 40-day distribution compliance period under Category 2 of Regulation S, the Notes may not be offered or sold to a U.S. person or for the account or benefit of a U.S. person (other than a distributor). The Notes and the Ordinary Shares will be subject to certain transfer restrictions.
The Notes will be issued in the Private Placement pursuant to the terms and conditions of a deed of trust between Gilat and Reznik Paz Nevo Trusts Ltd., as trustee. The Notes will not be registered under the Securities Act and will not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act. Gilat has undertaken to prepare and file with the SEC, no later than 12 months following the Closing, a new registration statement or a prospectus supplement to a prospectus that forms part of an existing registration statement for the resale of the Ordinary Shares underlying the Notes.
About Gilat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity, offering next-generation solutions and services for critical connectivity across commercial and defense applications. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.
Together with our wholly owned subsidiaries Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu, we offer integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites (SDS) via our Commercial and Defense Divisions. Our comprehensive portfolio is comprised of a software-defined platform and modems, high-performance satellite terminals, advanced Satellite On-the-Move (SOTM) antennas and Electronically Steered Antennas (ESAs), highly efficient, high-power Solid State Power Amplifiers (SSPAs) and Block Upconverters (BUCs) and includes integrated ground systems for commercial and defense markets, field services, network management software, and cybersecurity services.
Gilat’s products and tailored solutions support multiple applications including government and defense, IFC and mobility, cellular backhaul, enterprise, aerospace and critical infrastructure clients, all while meeting the most stringent service level requirements. For more information, please visit: https://www.gilat.com.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that are not historical facts and can generally be identified by the use of forward-looking terminology such as “estimate,” “project,” “intend,” “expect,” “believe,” “anticipate,” “plan,” “may,” “will,” “seek,” “could,” “should,” or similar expressions. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to our expectations regarding the issuance and sale of the Notes, the closing date of the transaction, and the intended use of the proceeds from the sale of the Notes. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements of Gilat to differ materially from those expressed in, or implied by, such statements. These risks and uncertainties include, among others, changes in general economic, market and business conditions; failure to maintain market acceptance of Gilat’s products; failure to timely develop and introduce new technologies, products and applications; rapid changes in the markets in which Gilat operates; increased competition, loss of market share or pressure on prices; loss of key OEM partners; inability to attract and retain qualified personnel; inability to protect proprietary technology; and risks associated with Gilat’s international operations and its location in Israel, including those arising from regional military conflicts and geopolitical instability. For additional information regarding these and other risks and uncertainties, please refer to Gilat’s filings with the U.S. Securities and Exchange Commission. Gilat undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Gilat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
PublicRelations@gilat.com
