Leviathan-Delek starts roadshow for $2.25 billion secured notes in four bullet tranches

By Paul A. Harris

Portland, Ore., July 27 – Leviathan Bond Ltd. began a roadshow on Monday for a $2.25 billion offering senior secured notes (Ba3/BB-/BB) in four bullet tranches, according to high-yield market sources in Europe and the United States.

The deal features tranches of three-, five-, seven- and 10-year notes, with tranche sizes remaining to be determined and could price as early as Aug. 4, sources say.

JPMorgan is the lead left bookrunner. HSBC, BNP Paribas and Goldman Sachs are the joint bookrunners.

The issuer is a special purpose vehicle for a natural gas production field off of Israel's Mediterranean coast. The project is owned by Delek Group and Ratio Oil Exploration Co., both of Israel, and Houston-based Noble Energy, Inc. (on July 20 Chevron Corp. announced it would acquire Noble in an all-stock transaction valued at $5 billion).

The notes are secured by Delek Drilling LP’s 45.34% working interest in the Leviathan project.

Proceeds will be used to repay a Leviathan capital expenditures facility, as well as the Delek Drilling term loan, also to fund a debt payment fund required balance and for general corporate purposes.

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