Ithaca Energy talks $350 million five-year notes at mid 9% area

By Paul A. Harris

Portland, Ore., May 11 – Ithaca Energy (North Sea) plc set initial price talk on its $350 million offering of five-year senior notes (Caa1/CCC+) in the mid 9% area, according to market source.

The Rule 144A and Regulation S for life deal, which has been on a roadshow in Europe, will be rolled out in front of investors in the United States during the early part of the May 14 week, including stops in New York on Monday, Boston on Tuesday and Los Angeles on Wednesday, and will be priced thereafter.

Joint bookrunner Barclays will bill and deliver. Deutsche Bank Securities Inc., BNP Paribas Securities Corp., 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.

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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