IGas Energy seeks OK to amend terms of two issues of 10% bonds due 2018

By Toni Weeks

San Luis Obispo, Calif., July 10 – IGas Energy plc will hold a meeting for bondholders to approve changes to the terms of its $165 million of 10% senior secured callable bonds due 2018 and its $30 million of 10% senior unsecured callable open bonds due 2018, according to a notice from bond trustee Nordic Trustee ASA.

The issuer is seeking the adjustments to align the terms of the bonds with those of its partners and to reflect the operational developments of the business, including the completion of a farm-out with Ineos Upstream Ltd. on May 7.

According to a notice, changes to the secured bonds include new definitions of debt service retention account, debt service retention account pledge, interim accounts, cash and cash equivalents, EBITDA, liquidity, reporting date, total interest-bearing debt and hedging.

Also under the terms of the secured bonds, the issuer wants to modify payments to its debt service retention account based on an upper and a lower DSRA floor.

For the unsecured bonds, the proposal includes amended definitions of interim accounts, cash and cash equivalents, EBITDA, liquidity, reporting date and total interest-bearing debt. The issuer will also be required to maintain a leverage ratio of not more than 3.5.

In consideration for approving the proposal, IGas Energy will pay a one-time consent and administration of 0.5% of the principal amount of a bondholder’s holdings.

To approve the resolutions, bondholders representing at least two-thirds of the bonds in each of the bond issues represented in person or by proxy at the bondholders’ meeting on Aug. 4 must vote in favor of the resolution. To form a quorum, at least half of the bonds in each of the issues must be presented at the meeting.

The issuer said that bondholders representing more than 36% of the secured bonds and more than 34% of the unsecured bonds have given support to the proposals.

The agent is ABG Sundal Collier ASA (Harald Erichsen at +47 22016023/+47 48016023 or herald.erichsen@abgsc.no; Kjetil Myklebust at +47 22016186/+47 90080632 of kjetil.myklebust@abgsc.no; or Ola Nygard at +47 22016186/+47 41213410 or ola.nygard@abgsc.no).

IGas is a London-based onshore hydrocarbon producer, delivering natural gas and crude oil to Britain’s energy market.

© 2015 Prospect News.
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