Delek Drilling has raised $ 2.25 billion

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The Company has completed the refinancing of its stake in the Whale Project; The volume of demand amounted to about $ 7 billion

Delek Drilling reported this morning on the completion of a refinancing pricing process of its share in the development of the Whale Project – the raising of 144A Whale Bond international bonds in the amount of $ 2.25 billion at a weighted interest rate of 6.29%.

The raising was carried out at the end of an accelerated procedure in which the partnership met with hundreds of investors from around the world, who expressed confidence in the drilling fuel activity and the Whale project, during a period of instability derived from the Corona’s impact on the financial sector worldwide.

The capital was raised for the purpose of refinancing the Levitan project, for which purpose a special company called Levitan Bond Ltd. was established, through which the issue will be carried out by placing the proceeds of the issue as a loan to the partnership on the same terms as the bonds held by the partnership. Its rights in the Whale Project.

The debentures are divided into 4 series whose maturity is expected to be one payment:

• 2023 (repayment of $ 500 million) at an interest rate of 5.75%

• 2025 (repayment of $ 600 million) at an interest rate of 6.125%

• 2027 (repayment of $ 600 million) at an interest rate of 6.50%

• 2030 (repayment of $ 550 million) at an interest rate of 6.75%

Yossi Abu, the company’s CEO, said after the completion of the round: “The international capital market has expressed great confidence in the Levitan project, which is a regional energy anchor. The high international demand has allowed us to expand the investor base in the partnership assets. The raising of the bonds is a significant milestone on the way to realizing Delek Drilling’s business vision and will allow us to expand our activities, promote future investments and continue the development of the partnership’s assets in Israel and abroad. “

Yossi Gvora, Deputy CEO of the partnership, added: “Successful raising is a significant milestone on the way to a solid and optimal capital structure for drilling fuel, as part of the partnership’s long-term financial strategy. The strong cash flow from Whale and Tamar will allow us to continue to reduce leverage levels in the coming years and continue to develop the partnership business. “

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