Scotland-based Ithaca Energy marketing $700 million five-year notes, early guidance in 10% area

By Paul A. Harris

Portland, Ore., July 8 – Aberdeen-based Ithaca Energy Ltd. disclosed plans to sell $700 million of five-year senior notes (B3/B/B+) on Monday, according to market sources.

The non-registered offering is expected to price during the July 16 week.

Initial guidance has the deal coming to yield in the 10% area, according to a bond trader.

J.P. Morgan Securities LLC is leading the offer.

The notes come with two years of call protection.

The oil and gas exploration and production company plans to use the proceeds to help fund its acquisition of Chevron North Sea Ltd. and to repay debt.

Ithaca Energy is a subsidiary of Israel-based Delek Group Ltd.

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