Ithaca Energy prices $750m senior notes, signs $1.24bn facility

Ithaca Energy announced the pricing of $750m in senior notes due 2029 on Friday, alongside the signing of a $1.235bn amended and restated reserves-based lending (RBL) facility by its subsidiary Ithaca Energy UK.

The FTSE 250 company said it expected to secure a total RBL facility of $1.4bn, including a $500m letter of credit tranche, with the new facility maturing in 2029.

It said the eight-and-one-eighth percent senior notes, offered at par, would be senior obligations of Ithaca Energy North Sea and guaranteed on a senior basis by Ithaca Energy E&P, as well as on a senior subordinated basis by other subsidiaries.

Interest on the notes would be paid semi-annually.

Proceeds from the notes, along with cash on hand, would be used to redeem the company’s existing $625m 9% senior notes due 2026, repay amounts drawn under an existing loan, and cover refinancing fees and expenses.

The board said the closing of the offering remained subject to customary conditions for similar transactions.

“The significant global investor demand for the RBL and notes in the market, with the offering vastly oversubscribed, is testament to the strength of our business and validates the group's growth strategy following its recent Business Combination with Eni UK,” said executive chairman Yaniv Friedman.

“I'd like to extend my thanks to the Ithaca Energy team, the banks and our advisors for a successful raise.”

At 1005 BST, shares in Ithaca Energy were down 2.66% at 102.6p.

Reporting by Josh White for Sharecast.com.