Energean has announced, following the update provided in its January Trading Statement & Operational Update on 23 January 2025, that Energean Israel has signed a 10-year, senior-secured term loan with Bank Leumi as the Facility Agent and Arranger for $750 million.
The term loan will be available to refinance the 2026 Energean Israel Limited Notes ('EISL') and to provide additional liquidity for the Katlan development. It has a 12-month availability period, during which multiple drawdowns can be made, providing flexibility to optimise finance costs.
Up to $475 million is available in US dollars and up to $275 million is available in New Israeli Shekel. The interest rate for the loan is floating and has been set at competitive levels versus the current bond market.
The term loan is secured on the assets of Energean Israel, pari passu with the EISL notes, non-recourse to Energean and has a bullet repayment in 2035.
As a result of this refinancing, Energean’s weighted average life of debt will be around seven years and the blended cost of debt will be around 7%.
Panos Benos, Chief Financial Officer of Energean, commented: 'This term loan demonstrates the confidence in our long-term cash flow generation, underpinned by our gas contracting strategy in Israel. It is another example of our ability to swiftly secure significant liquidity from alternative pools of capital, optimising our financing costs. This term loan strengthens our financial resilience and maximises liquidity for the Katlan development.'
Source: Energean
