Delek Drilling Looks to Refinance $2 Billion in Debt

June 29, 2020

Leviathan platform (Photo: Noble Energy)
Leviathan platform (Photo: Noble Energy)

Israel's Delek Drilling wants to refinance about $2 billion in loans it had taken to develop the major Leviathan natural gas field either by issuing bonds or through bank finance.

The company said in a statement on Monday it approached international credit rating agencies regarding a possible bond issuance of about $2.5 billion, which will be backed by "Leviathan project assets". It said it received an indicative rating of "BB", which is similar to a rating of "AA" in Israel.

Delek Drilling, a subsidiary of energy conglomerate Delek Group, has total financial debt of $3.4 billion. It is a partner in two of Israel's largest offshore natural gas fields, Tamar and Leviathan.

The company on Sunday reported first quarter net profit of $84.3 million, up 110% from a year earlier. Revenue jumped 97% to $186.7 for the period, boosted by the start of production at Leviathan, which supplies Israel, Jordan and Egypt. 

(Reporting by Ari Rabinovitch; Editing by Tova Cohen)



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