Signature of Refinancing Documents for Payment of Existing Ithaca Debentures
Tel Aviv, October 14, 2018. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that further to the Company’s Immediate Report dated July 29, 2018 (ref. no. 2018-01-069846) and the Immediate Report dated October 4, 2018 (ref. no. 2018-01-092370), the subsidiary Ithaca Energy (UK) Limited (“Ithaca”) entered on October 12, 2018 into a loan agreement with a consortium of international financial institutions to obtain a loan of USD 300 million for a period of 5 years (October 2023), which will be used for early payment of Ithaca’s existing debentures that are meant to be repaid in July 2019.
According to its terms, the loan bears annual interest of Libor plus 4%, which will rise by 0.5% each year. The interest rates of the loan are lower than the interest currently paid on the debentures to be repaid.
The loan will be secured by a second mortgage on Ithaca assets and a guarantee from Delek Group (which will cancel an existing guarantee of USD 70 million). The loan can be repaid early at any time without any surcharge.
Receipt of the loan and repayment of the debentures have been set for this Tuesday, October 16, 2018.
The completion of this process, namely raising the loan and early repayment of the debentures, has also allowed the Company to increase its RBL credit facility to USD 400 million, with repayment date commencing in December 2022.
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on October 14, 2018.
About The Delek Group
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
Head of Investor Relations
Delek Group Ltd.
Tel: +972 9 863 8443