Ithaca Energy starts roadshow for $350 million five-year notes offer; initial talk in low 9% area

By Paul A. Harris

Portland, Ore., May 8 – Ithaca Energy (North Sea) plc began an international roadshow on Tuesday in Tel Aviv for a $350 million offering of five-year senior notes, according to market sources.

Initial price talk is in the low 9% area, a trader said.

The roadshow travels to London West End on Wednesday and to London City on Thursday. European investor meetings and calls are scheduled for Friday.

A roadshow in the United States gets underway in New York on Monday, travels to Boston on May 15 and winds up in Los Angeles on May 16.

The Rule 144A and Regulation S for life offering is set to price thereafter.

Joint bookrunner Barclays will bill and deliver. Deutsche Bank Securities Inc., BNP Paribas, RBC Capital Markets LLC and Wells Fargo Securities LLC are also joint bookrunners.

ABN Amro, Goldman Sachs & Co. and NatWest Securities are the lead managers.

Lloyds and SEB Securities are the co-managers.

The notes become callable after two years at par plus 50% of the coupon.

Moody's Investors Service assigns its B3 corporate credit rating to the Aberdeen, Scotland-based oil and gas operator; S&P Global Ratings assigns its B corporate credit rating.

The company, which is focused on North Sea production, appraisal and development activities, plans to use the proceeds to redeem its 8 1/8% senior notes due 2019, to pay down its RBL facility and to repay certain other debt.

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