IOG updates talks with bondholders of its €100 million secured bonds

By Mary-Katherine Stinson

Lexington, Ky., June 16 – IOG plc updated its discussions with an ad-hoc group of investors of its €100 million senior secured bonds, as it seeks to pre-emptively address potential near-term covenant breaches and the longer-term bond maturity, according to a notice.

As previously reported, the company announced on June 7 that it expects it will breach one or more covenants under the terms of its €100 million senior secured bonds at the next covenant test date of June 30 due to declining gas prices.

Since the record date for the coupon payment is June 16, IOG has asked the paying agent to postpone the interest payment date in the central securities depository for technical reasons. The potential postponement does not constitute a change in the due date, which is June 20.

It is contingent on approval by a majority of the bondholders in a formal bondholder resolution.

Also on June 7, the company announced it had begun work with an ad hoc group of bondholders representing around 40% of the bonds to secure preemptive waivers of the potential covenant breaches. As of June 16, this group has now grown to more holders of more than 50% of the bonds.

IOG is a United Kingdom developer and producer of indigenous offshore gas. The company was previously known as Independent Oil & Gas plc.

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