Energean Plans $2.5bn Senior Debt Offering
Mediterranean-focused producer Energean plans to offer $2.5bn in senior notes to settle existing debts, it said on February 28.
The notes will be offered in four tranches and will mature in 2024, 2026, 2028 and 2031. The funds raised will be used to repay a $1.45bn outstanding project finance facility and a $700mn term loan, among other purposes, the company said in a London stock exchange filing.
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Energean recently took final investment decisions on two new upstream projects: the Karish North gas field off Israel and a subsea tieback project at the North El Amriya (NEA) and North Idkunea (NI) concession offshore Egypt.
The company will announce the pricing of the new offering prior to completion. Its management plans to hold a global roadshow with institutional investors for the issue.
Credit ratings agency Moody's said on February 28 it had assigned a Ba3 rating to Energean's offering with a stable outlook. Moody's cited Energean's low-cost and sizeable reserves in Israel, the expectation of strong cash flow from the fields and the company's diversifed long-term gas offtake agreements that are mostly indexed to Israeli power tariffs, significantly reducing price uncertainty, as positive factors behind the rating.