Igas sheds little light on bonds transaction

British onshore hydrocarbon producer Igas was embroiled in a secretive exchange of issued bonds this week, but the company did little to explain the situation in an update to the market on Tuesday.

On Monday, Pareto Securities announced on behalf of an unnamed client that the offer to holders of Igas’s $165m senior secured callable bonds had been accepted by the client.

Pareto said the client had decided to accept all tenders to and including 75% of par, which will be the purchase price at which all relevant bonds are to be acquired.

“Cash settlement for the Bonds, including accrued interest, is expected to occur on 12 July 2016,” Pareto said in its statement.

“Bonds tendered above 75% of par in the Tender Offer are now free to trade.”

The update from Igas on Tuesday shed little light on the matter, with the company simply stating it “notes the announcement yesterday by Pareto Securities … regarding the result of a tender offer for $165m senior secured bonds.”

“The company also notes the posting of an acquisition of senior secured bonds with a nominal value of $38.42m at a price of 75 cents per bond on the Oslo Stock Exchange.”

Igas told the market it is continuing its active discussions, and promised to provide further updates “as appropriate”.