HERZLIYA, Israel, June 13 (Reuters) - Israel’s Navitas Petroleum plans to raise $130 million in bonds and then carry out an initial public offering (IPO) on the Tel Aviv Stock Exchange as it expands operations in the Gulf of Mexico and Canada.
The exploration and production company will use the money raised in the bond offering to fund development and secure a 5 percent stake in the deep-water project Buckskin in the Gulf of Mexico, which holds an estimated 490 million barrels of recoverable oil, said Navitas Chairman Gideon Tadmor on Tuesday.
Upon completion of the bond issuance -- which is aimed at institutional investors and has been graded “A-” by Standard & Poor’s Israeli unit Maalot -- Navitas will carry out an IPO in Tel Aviv, Tadmor said.
Navitas’ valuation in the IPO will be approximately $100 million, according to a prospectus.
Navitas has stakes in 11 oil and gas projects in the Gulf of Mexico and another in Newfoundland, Canada. (Reporting by Ari Rabinovitch; Editing by Tova Cohen)