Goldman preps rare royalty-backed bond for Delek

By Owen Sanderson
19 Oct 2020

Goldman Sachs is marketing a new high yield bond for Delek Energy, backed by the royalty payments to come from the Leviathan gas field off the coast of Israel. The financing is effectively super senior to a $2.25bn bond issued in the summer, and ekes out extra debt capacity, borrowing financial technology common in the US shale industry and applying it to a new, Israeli context.

The offering, Delek Overriding Royalty Leviathan, is a $180m Tel Aviv-listed three year in 144A/RegS format, with Goldman Sachs as sole lead and a single B+ rating from Fitch.

The bond will be backed by the Overriding Royalty Interests (ORRIs) from the Leviathan gas field, a major gas ...

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