New Issue: Ithaca Energy (North Sea) prices $625 million five-year notes at par to yield 9%

By Paul A. Harris

Portland, Ore., July 23 – Ithaca Energy (North Sea) plc priced a $625 million issue of five-year senior notes (B3//B+) at par to yield 9% on Friday, according to a market source.

The yield printed at the wide end of the 8¾% to 9% yield talk.

Joint global coordinator and bookrunner Morgan Stanley will bill and deliver. BNP Paribas and ING were also joint global coordinators and bookrunners. Additional bookrunners were Deutsche Bank, DNB Markets, Lloyds Bank Corporate Markets, NatWest Markets and Wells Fargo Securities.

The proceeds of the offering together with drawings under its amended and restated RBL facility will be used to repay a portion of the company’s subordinated Delek loan and related fees.

The oil and gas exploration and production company is a subsidiary of Israel-based Delek Group Ltd., operating in the U.K. Continental Shelf.

Issuer:	Ithaca Energy (North Sea) plc
Amount:	$625 million
Maturity:	July 15, 2026
Securities:	Senior notes
Joint global coordinators:	Morgan Stanley (bill and deliver), BNP Paribas and ING
Bookrunners:	Morgan Stanley, BNP Paribas, ING, Deutsche Bank, DNB Markets, Lloyds Bank Corporate Markets, NatWest Markets and Wells Fargo Securities
Coupon:	9%
Price:	Par
Yield:	9%
Spread:	827 bps
First call:	July 15, 2023 at 104.5
Equity clawback:	40% at 109 until July 15, 2023
Trade date:	July 23
Settlement date:	July 30
Ratings:	Moody's: B3
	Fitch: B+
Distribution:	Rule 144A and Regulation S
Price talk:	8¾% to 9%

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