IGas Energy approved to amend terms of two issues of 10% bonds

New York, Aug. 4 – IGas Energy plc said it received approval from bondholders to make changes to its $165 million of 10% senior secured callable bonds due 2018 and its $30 million of 10% senior unsecured callable open bonds due 2018.

At meetings held Tuesday, 98.57% of the votes from holders of the secured bonds were in favor while 100% of votes for the unsecured bonds supported the amendments, according to a company announcement.

As announced on July 10, IGas was 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.

For the resolutions to be approved, 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 had to vote in favor of the resolution. To form a quorum, at least half of the bonds in each of the issues had to 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 before they were announced.

The agent is ABG Sundal Collier ASA (+47 22016023, +47 48016023 or herald.erichsen@abgsc.no, +47 22016186, +47 90080632 or kjetil.myklebust@abgsc.no; or +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.

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