By Paul A. Harris
Portland, Ore., July 18 – Aberdeen-based Ithaca Energy Ltd. priced a downsized $500 million issue of five-year senior notes (B3/B/B+) at par to yield 9 3/8% on Thursday, a market source said.
The issue was downsized from $700 million.
The yield printed in the middle of the 9¼% to 9½% yield talk.
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.
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 downsizing 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.
| Issuer: | Ithaca Energy (North Sea) plc
|
| Amount: | $500 million, decreased from $700 million
|
| Maturity: | July 15, 2024
|
| Securities: | Senior notes
|
| Global coordinator: | JPMorgan (bill and deliver)
|
| Bookrunners: | JPMorgan and BNP Paribas
|
| Co-managers: | RBC, Lloyds, Goldman Sachs, Nomura, Leader, Menora and Excell
|
| Coupon: | 9 3/8%
|
| Price: | Par
|
| Yield: | 9 3/8%
|
| Spread: | 753 bps
|
| Call protection: | Two years
|
| Trade date: | July 18
|
| Settlement date: | Aug. 1
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¼% to 9½%
|
| Marketing: | Roadshow
|
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