Ithaca Energy’s downsized $500 million five-year senior notes guided in mid 9% area

By Paul A. Harris

Portland, Ore., July 17 – Aberdeen-based Ithaca Energy Ltd. is wrapping up the roadshow on its downsized $500 million offering of five-year senior notes (B3/B/B+), a market source said on Wednesday.

The deal, which was downsized from $700 million, is guided in the mid 9% area.

There are covenant changes bearing primarily upon how the company may disburse cash and incur additional debt.

Global coordinator and joint bookrunner JPMorgan will bill and deliver for the Rule 144A and Regulation S offering. BNP Paribas is also a joint bookrunner.

RBC, Lloyds, Goldman Sachs, Nomura, Leader Capital Markets Ltd., Menora and Excell are the co-managers.

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.

The $200 million downsize of the notes offering will be made up by means of an equity contribution in the form of common equity and/or subordinated shareholder loans, the source said.

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

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