By Paul A. Harris
Portland, Ore., Aug. 4 – Leviathan Bond Ltd. priced $2.25 billion of senior secured bullet notes (Ba3/BB-/BB) in four tranches on Tuesday, according to a market source.
The deal shapes up as follows:
• $500 million of three-year notes priced at par to yield 5¾%, in the middle of yield talk in the 5¾% area. Initial talk was in the 5 7/8% area;
• $600 million five-year notes priced at par to yield 6 1/8%, at the tight end of the 6 1/8% to 6¼% yield talk. Initial talk was in the 6 3/8% area;
• $600 million seven-year notes priced at par to yield 6½%, at the tight end of the 6½% to 6 5/8% yield talk. Initial talk was in the 6¾% area; and
• $550 million 10-year notes priced at par to yield 6¾%, 12.5 basis points tighter than the 6 7/8% to 7% yield talk. Initial talk was in the 7¼% area.
JPMorgan and HSBC were the global coordinators. BNP Paribas and Goldman Sachs are 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.
| Issuer: | Leviathan Bond Ltd.
|
| Amount: | $2.25 billion
|
| Securities: | Senior secured notes
|
| Call protection: | Non-callable
|
| Global coordinators: | JPMorgan and HSBC
|
| Bookrunners: | BNP Paribas and Goldman Sachs
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Notes due 2023
|
| Amount: | $500 million
|
| Maturity: | June 2023
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 564 bps
|
| Price talk: | 5¾% area
|
|
|
| Notes due 2025
|
| Amount: | $600 million
|
| Maturity: | June 2025
|
| Coupon: | 6 1/8%
|
| Price: | Par
|
| Yield: | 6 1/8%
|
| Spread: | 592 bps
|
| Price talk: | 6 1/8% to 6¼%
|
|
|
| Notes due 2027
|
| Amount: | $600 million
|
| Maturity: | June 2027
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 613 bps
|
| Price talk: | 6½% to 6 5/8%
|
|
|
| Notes due 2030
|
| Amount: | $550 million
|
| Maturity: | June 2030
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 623 bps
|
| Price talk: | 6 7/8% to 7%
|
|
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