10/22/2020 Delek Overriding Royalty Leviathan Ltd
(DORLEV) US$180m 144A/Reg S sr sec notes due 12/30/23 (3y). NCL (MWC T+50bp) (3mo par call). NR/NR/B+ (--/--/stable). Secured by the overriding royalty interests (ORRIs) in the Leviathan Gas Field (Leviathan). Via GS sole books and gloco, Leader Underwriters as Local Joint Lead Manager. No reg rights. Semi pay starts 12/30/20. List Tel Aviv Stock Exchange for trading by institutional investors. FCA/ICMA stabilization applies. Settles 10/28 (T+4). IPT: 7.50% area. Priced: 7.494% at 100. +730bp vs 0.125% 10/15/23. Telephonic roadshow 10/19-21. UOP: fund the acquisition of the Royalties Interest from Delek Group in cash ($71.5m) and Delek Energy by way of issuing new shares of the Issuer to Delek Energy, fund interest payment account ($13m), and make the loan to Delek Group $87.5m (Delek Group will use the proceeds for GCP). Biz: a special purpose vehicle wholly owned by Delek Energy Systems; Leviathan is a world-class, offshore natural gas asset located in the East Mediterranean Sea, c.130km off the coast of Northern Israel. Leviathan has over 50 years reserve life at 2P+2C assuming full 12 BCM p.a. production. The ORRIs entitle the Issuer to earn royalties at a percentage of revenue based on Delek Drilling’s interest in the petroleum produced from the Leviathan gas field. HQ: Herzliya, Israel.