|Agreement for the Financing of the Delek Group Partnerships’ Share in the Costs of Development of the Leviathan Project - Fulfillment of Preconditions to the First Money Withdrawal|
Tel Aviv, May 12, 2017. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) presents below an Immediate Report published by the each of Avner Oil Exploration Limited Partnership and Delek Drilling Limited Partnership ("the Partnerships") regarding fullfillment of the preconditions to the first money withdrawal, according to the financing agreement of Delek Group Partnerships’ share in the cost of development of the Leviathan project.
Further to the provisions of the Partnerships’ immediate reports of February 21, 2017 and Section 7.22.1(a) of the Partnerships periodic reports as of December 31, 2016, as published on March 23, 2017 regarding the signing of financing agreements between the Partnerships and a consortium of local and foreign finance providers headed by HSBC Bank Plc. and J.P. Morgan Limited, whereby each Partnership shall be provided with a limited recourse loan in the sum of approx. $875 million (and together approx. $1.75 billion) for the financing of its’ share in the costs of development of the Leviathan project (the “Financing Agreement” and the “Loan”, respectively), the Partnerships respectfully announce that all of the preconditions to performance of the first money withdrawal have been fulfilled, according to the conditions of provision of the Loan facilities, as specified in the immediate reports of February 21, 2017.
The Partnerships intend to perform, in the coming days, a withdrawal from the first facility (the “First Withdrawal”). The First Withdrawal funds shall be used, inter alia, for payment of the payment demands issued by the operator to the partners in the Leviathan project, as well as for the financing of part of the costs of the Loan.
It is noted that prior to fulfillment of the preconditions as aforesaid, an amendment to the Financing Agreement was signed, whereby events of default shall include, inter alia, an event which has a material adverse effect on the Partnerships’ ability to fulfill its material undertakings in connection with the Financing Agreement or the Project Documents (as defined in the Financing Agreement) or on its assets, business or financial position, in a manner which impairs its ability to pay its debts as they become due, or on the project in a manner which jeopardizes or is highly likely to jeopardize the ability to refinance the Loan (“Material Adverse Effect”), in lieu of a clause in the Financing Agreement which determined an event of default if an action is taken by a regulatory authority which has a Material Adverse Effect.
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on May 11, 2017.
About The Delek Group
The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF.
In addition, Delek Group has a number of assets in downstream energy, water desalination, and in the finance sector.
For more information on Delek Group please visit www.delek-group.com