Simpson Thacher recently represented the initial purchasers, led by Citigroup, J.P. Morgan and HSBC, as joint book-running managers, in connection with a Rule 144A/Regulation S offering of $400 million of 2.803% Senior Secured Notes due 2016, $400 million of 3.839% Senior Secured Notes due 2018, $400 million of 4.435% Senior Secured Notes due 2020, $400 million of 5.082% Senior Secured Notes due 2023 and $400 million of 5.412% Senior Secured Notes due 2025 by Delek & Avner (Tamar Bond) Ltd., a limited liability company formed by the Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership (together, the “Sponsors”). The notes are listed for trading on the system of the Tel Aviv Stock Exchange for trading by institutional investors, and recourse on the notes is limited to the Sponsors’ working interests in the Tamar natural gas reservoir located in the Mediterranean Sea offshore of Israel.
The Sponsors are both controlled by Delek Group Limited, which together with its subsidiaries constitutes one of Israel’s largest conglomerates, with businesses that include the distribution of petroleum products in Israel, Europe and the United States, refining in the United States, the importation and distribution of automobiles in Israel, management of motorway service areas in the United Kingdom, insurance and finance in Israel and the United States, desalination and, through the Sponsors, oil and natural gas exploration and production in Israel and Cyprus.
The Simpson Thacher team for the transaction included Andy Keller, Justin Cooke, David Azarkh, Jason Pearl and Adam Moss (Capital Markets), Alan Brenner and Andy Veit (Credit), Andrew Purcell and Michael Cardella (Tax), Adeeb Fadil and Noreen Lavan (Environmental), Paul Koppel (ECEB) and Jennie Getsin (FINRA).