The following updates are based on information released by Delek Group gas subsidiaries, Delek Energy Systems Ltd., Avner Oil & Exploration L.P and Delek Drilling L.P. All financial and business information is given only for the convenience of the reader. The only official financial and business information, is that which is included in the officially published immediate reports and financial reports of Delek Group and its gas subsidiaries, to the Israeli Securities Authority and the Tel Aviv Stock Exchange, in Hebrew. In the event of any conflict between financial and business information given on this site and the Hebrew published immediate reports, the Hebrew published immediate reports shall prevail. More on Delek Group's disclaimer.
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|Prior Conditions for Withdrawal of Delek Group Gas Subsidiaries’ Tamar Project Financing Have Been Met|
Tel Aviv, August 08, 2012. Delek Group (TASE: DLEKG, OTCQX: DGRLY) ("the Company") subsidiaries Delek Drilling L.P. and Avner Oil Exploration L.P. (together "the partnerships") published the following immediate report;
Further to the immediate reports dated April 21, 2012, with regard to signed loan agreements between the partnerships and a consortium of foreign banks headed by HSBC Bank Plc and Barclays Bank Plc, (hereinafter jointly: "the Financing Banks"), for a total of approximately $400 million for each partnership to finance long term project financing the partnerships share in the development costs of the Tamar Project (the "Tamar Project", "Loan" and "Financing Agreement", respectively), the partnerships hereby announce that the prior conditions for withdrawing the first amount of the Loan were met.
The first withdrawal, for a total of approximately $205 million (net) for each partnership, is scheduled for the next few days. These funds will be used, inter alia, to repay the balance of the bridge loan received by each partnership in June 2010 for a total amount of approximately $191.5 million for each partnership (including the accrued interest), which were given to finance the partnerships share in the development plan of the Tamar Project ("the Interim Financing") (for additional details about the Interim Financing, see the Immediate Reports dated June 27, 2010), for the expenses occurred for placing the Loan and for the partnerships investments payments made in Tamar Project beyond the amounts determined in the Financing Agreement.
With completion of prior conditions for withdrawing the Loan funds and in accordance with the Financing Agreement, the hedging transactions to fix the LIBOR rate of interest have been signed and completed between the partnerships and the Financing Banks (the "hedging transaction"). As per the hedging transaction the LIBOR rate applied during the Loan period is fixed at an annual rate of 0.976%.
The nominal value of the hedging transactions of each partnership is totaling approximately $191 million and increasing gradually until the completion of a full withdrawal of the Loan, approximately $300 million (approximately 75% of the balance of the Loan). The hedging transactions that were made are in accordance with a certain forecast as agreed with the Financing Banks for the repayment of the Loan, when in fact there may be deviation from this forecast, in case of an earlier redemptions as to the natural gas sales from the reservoir at the Tamar project, due to cash sweep mechanism as determined in the Financing Agreement.
In the scope of completing the prior conditions, the partnerships placed approximately $ 5 million each aside as a safety cushion for the purpose of the Financing Banks to ensure the completion of the partnerships investments in the Tamar project in case that the development budget is exceeded.
Further to the immediate reports dated December 25, 2011 with regard to Leviathan financing agreement and further to immediate reports dated July 5, 2012, with regard to the amendment to the aforesaid agreement, the partnerships are working on withdrawing the Facility B funds.
This is a convenience translation of the recent HEBREW immediate reports issued to the Tel Aviv Stock Exchange by the Company on August 8, 2012.
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 33 TCF.
In addition, Delek has built an extensive network of global downstream assets, including 1,900 gas stations and convenience stores in the U.S., Europe and Israel, and petroleum refineries in the U.S. Delek also holds significant interests in leading water desalination, power generation, insurance and automotive companies.
In 2011, the Company's revenues were NIS 59 billion. Delek Group's shares are traded on the Tel Aviv Stock Exchange (TASE: DKLG) as part of the TA25 Index.