Energean announced its intention to offer $2.5bn in senior secured notes on Monday, to repay debt, replace existing available credit, and to fund certain reserve accounts.
The FTSE 250 company said its subsidiary Energean Israel Finance would offer the notes in four tranches, which were expected to mature in 2024, 2026, 2028 and 2031.
It said the net proceeds would be used to repay outstanding indebtedness under the group’s $1.45bn project finance facility, and a $700m term loan.
The funds would also be used to replace the existing undrawn amounts available under those facilities, as well as to fund certain reserve accounts, and for transaction expenses and the group’s general corporate purposes.
“The offering follows a thorough evaluation by the group of the options available for the refinancing of the project finance facility and the term loan, as had previously been communicated to the market, and following positive feedback from its recent non-deal roadshow,” the board said in its statement.
“The group will announce the pricing of the offering prior to its completion, if the offering reaches the pricing stage.”
Energean’s board said it intended to hold a global roadshow with institutional investors in connection with the offering.
At 0813 GMT, shares in Energean were up 2.39% at 925.9p.
