Iona Energy trustee to distribute $600,000 to 9½% bondholders Oct. 6

By Caroline Salls

Pittsburgh, Sept. 28 – The trustee for Iona Energy Co. (UK) Ltd.’s 9½% senior secured callable bond issue 2013/2018 will make a $600,000 partial distribution to bondholders on Oct. 6, according to a notice released Thursday.

The distribution will be made to bondholders of record as of Oct. 4 and will be equal to 114.28571% of the face value of the respective bondholders’ holding of the bonds.

The trustee said in the notice that the distribution will be made as an extraordinary payment and will not constitute a redemption of the bonds.

The distribution will be made from an NT retention amount.

Since bondholders are entitled to receive the full amount of all extraordinary proceeds under the bond agreement, Nordic said future recoveries of bondholders from those proceeds will not be capped at the principal amount outstanding.

In order to ensure that bondholders receive the full amount of extraordinary proceeds to which they are entitled, the trustee said it will structure future distributions either as extraordinary payments or as a payment of principal with a premium.

Iona Energy is a Calgary, Alta.-based oil and gas company with assets in the United Kingdom’s North Sea.

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