Ithaca announce $300M senior notes pricing

Ithaca announce $300M senior notes pricing

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) (“Ithaca” or the “Company”) announce that it has priced its offering of $300 million aggregate principal amount of 8.125% senior unsecured notes due 2019 at par (the “Notes”).
Interest will be payable semi-annually. The offering is expected to complete on or about 3 July 2014, subject to customary conditions precedent for similar transactions.
The Notes, the net proceeds of which will be used to partially repay (without cancelling) the Company’s senior secured reserves based lending (“RBL”) facility, will be senior obligations of the Company and will rank pari passu with all present and future senior unsecured indebtedness of the Company.
Following the Notes offering, the Company intends to draw amounts under the RBL facility to finance the recently announced acquisition of Summit Petroleum Limited, which is expected to close, subject to regulatory approvals and customary closing conditions, during the third quarter of 2014. The guarantees of the Notes by certain subsidiaries of the Company will be subordinated to the obligations of the guarantors under the Company’s RBL facility and corporate facility.

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