2022 opened on the right foot for Yitzhak Tshuva and the Delek Group under his control (48.6%). Since the beginning of the year, the company’s share has risen by 37% – the highest increase in the TA-125 index – and reached a market value of NIS 6.4 billion.
This is a value similar to that of January 1, 2020, shortly before the outbreak of the corona crisis, which caused the oil price to plummet and sent the market value of the energy group to a low of only NIS 650 million. This value is similar to the one according to which Teshuva took over the group 25 years ago, which was then controlled by the Recanati family. In fact, Delek ended 2020 as the most battered stock in the Tel Aviv Stock Exchange’s representative index.
Read more in Calcalist:
Since then, however, the price of oil has recovered dramatically to about $ 86 a barrel, and some predict that it will soon reach $ 100. This is at a time when, at the height of the crisis, oil is even trading at a negative price for a moment. Against this background, and thanks to the many steps the group has taken – including capital raising, which diluted Tshuva’s share, and aggressive realizations of many assets – the stock has recovered significantly, and the company is taking advantage of this to reduce its debt.
Yesterday, under the management of Idan Wells, the company offered the bondholders of the 18 and 19 series series to repay all the debt towards them. The current volume of the series is NIS 177 million and NIS 144 million, respectively, in terms of principal. The first series also has interest payments Of NIS 11 million and payments of NIS 6 million per second, so that in total the Delek Group wants to repay NIS 338 million.The two series were issued in 2009 and 2010 and their final redemption date is October and November this year.
In addition, the Delek Group offers holders of the largest series – LA, amounting to NIS 2.2 billion – a conversion to bonds of the Led series, amounting to NIS 441 million. 2025, stands at 4.1%, while the interest rate for the LD series, whose final redemption date is 2028, is 5.2%. In doing so, in effect, the company seeks to deploy a portion of the payments of its largest series over a longer period of time. Delek Group requests that a meeting of bondholders be convened to amend the trust deeds, in a way that will allow it to make the early repayment in full.
In addition to these series, Delek has two additional series of bonds, and a total of six series whose total volume in terms of principal is NIS 4.2 billion. While at the height of the crisis the debt to bondholders was about NIS 6 billion, and the entire financial debt was NIS 8 billion NIS. In the time that has elapsed since then, the Group has repaid its debts to banks at an accelerated rate, with the aim of removing liens from assets and transferring them to the bondholders, who were originally unsecured. In full), LA, Lag and LD – in the amount of about NIS 1.7 billion.
1 View the gallery
On the right, Idan Wells, CEO of the Delek Group and controlling shareholder Yitzhak Tshuva
(Photo: Uriel Cohen)