White & Case Advises Energean Group on US$2.5 Billion High Yield Bond Offering

Global law firm White & Case LLP has advised Energean Israel Finance Ltd., a finance subsidiary of Energean PLC, a London-based leading independent oil and gas company, on its US$2.5 billion offering of Rule 144A/Reg S high yield senior secured notes.

"The White & Case team has advised the Energean Group on a significant and groundbreaking high yield bond offering that represents another milestone for this successful group as it completes the development of its flagship assets in Israel," said White & Case partner Gilles Teerlinck, who led the Firm’s deal team on the high yield bond offering.

The offering is the largest ever non-US energy high yield bond offering, providing the Energean Group with the financing needed to complete the development of its flagship Israeli Karish and Tanin offshore gas fields, which are scheduled to commence production of gas in the fourth quarter of 2021.

J.P. Morgan and Morgan Stanley acted as joint global coordinators and joint lead bookrunners; BNP Paribas, Credit Suisse, ING, and Natixis as joint bookrunners; and Pareto Securities and Poalim IBI as co-managers. The senior secured notes are expected to be listed on TACT Institutional of the Tel Aviv Stock Exchange and the proceeds from the offering were placed in escrow pending receipt of Israeli regulatory approvals.

White & Case has also advised Energean on a new US$700 million Term Loan project finance facility led by J.P. Morgan AG, Morgan Stanley Senior Funding, Inc., BNP Paribas, ING Bank N.V. and Natixis as mandated lead arrangers. The term loan follows White & Case’s role advising Energean on the US$1.45 billion Senior Credit Facility led by Morgan Stanley, Natixis, Bank Hapoalim and Société Générale as mandated lead arrangers, which was the primary source of funding for the Karish and Tanin offshore gas fields development over the last three years. Amounts outstanding under the US$700 million Term Loan project finance facility and the US$1.45 billion Senior Credit Facility will be repaid with the proceeds from the offering of the senior secured notes, once released from escrow.

"Advising on these significant transactions represents further milestones in our long relationship with Energean," said White & Case partner Tom Bartlett. "They underline our strong presence in the oil & gas sector and are a clear demonstration of the truly global nature of the integrated service White & Case offers its clients."

White & Case partner Allan Taylor, who led the Firm’s teams on a number of acquisitions made by Energean as well as its IPO, said: "Our relationship with Energean has gone from strength-to-strength in recent years. We have advised the company on a number of key transactions including the acquisition of Kerogen’s 30 percent shareholding in Energean Israel Limited (EISL), which resulted in Energean owning 100 percent of EISL’s share capital; its US$750 million acquisition of the Edison E&P business; and on its London Stock Exchange IPO listing."

The White & Case team in London that advised on the high yield offering was led by partner Gilles Teerlinck and included partners Jill Concannon and Allan Taylor with support from associates Anna Soroka and Kelly Trueman. The London team which advised on the project financing was led by partner Tom Bartlett with support from associates Radhika Wason and Sara Nehring.

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