Tel Aviv, July 29, 2018. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that further to what was stated in section 1.8.19 (A)(9) of the Company's Periodic Report for 2017 that was published on March 28, 2018 (ref. no. 2018-01-031177) concerning a re-finance of the existing debt of the subsidiary Ithaca Energy Inc. (“Ithaca”), on July 26, 2018 Ithaca received a commitment letter from an international bank for provision of a loan to a subsidiary of Ithaca of USD 300 million for 5 years, at interest lower than the interest on Ithaca’s current debt, and which can be repaid at any time without penalty for early repayment.
The loan will be used to repay senior unsecured debentures of Ithaca whose repayment date is July 2019.
The loan will be secured by a second lien on Ithaca assets (following an existing mortgage to the banks which had provided RBL’s) as well as a guarantee from Delek Group (which cancels an existing guarantee of USD 70 million).
The parties will work to sign the agreements and obtain all the required approvals for the new financing during the third quarter of 2018.
Warning concerning forward looking information - Estimates of the Company concerning signing the loan agreement, its terms and uses are forward looking information in its meaning in the Securities Law, 1968, based entirely on estimates the Company has received from Ithaca, and there can be no certainty that it will come about, in whole or in part, and in particular there is no certainty that the agreements will be signed and the approvals required to obtain the loan will be received in the manner stated or in any other manner. The said information may come about in a significantly different manner on account of various factors, including inter alia delays in timetables, changes in market conditions, in the terms of the loan and in economic feasibility.
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on July 29, 2018.
Delek Group is an independent E&P and the pioneering visionary behind the development of the East Med. With major finds in the Levant Basin, including the Leviathan (21.4 TCF) and Tamar (11.2 TCF) reservoirs and others, Delek is leading the region’s development into a major natural gas export hub. In addition, Delek has embarked on an international expansion with a focus on high-potential opportunities in the North Sea and North America. Delek Group is one of Israel’s largest and most prominent companies with a consistent track record of growth. Its shares are traded on the Tel Aviv Stock Exchange (TASE:DLEKG) and are part of the TA 35 Index.
For more information on Delek Group please visit www.delek-group.com