The Delek Drilling partnership is raising $2.25 billion in an offering of bonds to foreign and Israel financial institutions. The offering is led by JP Morgan and HSBC, along with Israeli underwriters Leader, Value Base and Barak Capital.
JP Morgan is the largest bank in the US, and HSBC is one of the largest banks in the world, with high exposure to investors in Europe and Asia. These two banks will work with financial institutions overseas, while the Israeli underwriters will deal with the local institutions.
The offering is due to be completed within the next few weeks, assuming that it takes place.
Delek Drilling says that it is acting to obtain a BB international rating for the new bonds. They will be secured on Delek Drilling's entire rights in the Leviathan natural gas project offshore from Israel, including 45.34% of the shares in Leviathan, revenue from gas supply contracts, the joint operating agreement, part of the projects assets, and more.
The total $2.25 billion value of the offering will be divided between four bond series redeemable in 2023, 2025, 2027, and 2030. Delek Drilling says that it is also acting to put back the repayment dates of existing loans taken to finance the Leviathan project. The company says that is has reached agreement in principle on the matter with its lender banks.
Published by Globes, Israel business news - en.globes.co.il - on July 27, 2020
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