Ithaca Energy Inc. (IAECN: ISINs US465676AA22 / USC48677AA34) (“Ithaca” or the “Company”) announces that it has successfully refinanced its bank debt facilities to better align with the maturity of its senior unsecured notes and retain flexibility around future financing activities associated with delivering upon the growth objectives of the business.
The Company has extended the maturity of its senior reserves based lending (“RBL”) facility to May 2019 and retired its junior RBL facility. The new RBL facility is for $245 million, consisting of a $200 million conventional borrowing base tranche and a $45 million tranche to part fund Vorlich field development capital expenditures.
By temporarily constraining the RBL term to align with the maturity of the Company’s existing $300 million senior unsecured notes (due July 2019) and retain full future refinancing flexibility, the debt availability under the new RBL facility has naturally been reduced. The RBL has therefore been supplemented with a $140 million term loan, securitised by Ithaca’s parent company through a $70 million future acquisition fund and a corporate guarantee.
The combined interest rate of the two bank facilities based on current drawings is LIBOR +2.6%.
The Company continues to maintain a strong liquidity profile, with a combined overall debt capacity of $715 million compared to net debt at 30 September 2017 of $598 million.
The bank facilities are provided by: BNP Paribas, Commonwealth Bank of Australia, Royal Bank of Canada, ABN-Amro, Barclays Bank, Wells Fargo, Lloyds Bank, Royal Bank of Scotland and Skandinaviska Enskilda Banken.
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About Ithaca Energy
Ithaca Energy Inc. is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries and the exploitation of its existing UK producing asset portfolio. The Company is a wholly owned subsidiary of the Tel Aviv stock exchange listed Delek Group Limited (TASE: DLEKG, US ADR: DGRLY), Israel’s leading integrated energy company. For further information please consult the Company’s website www.ithacaenergy.com.
Some of the statements and information in this press release are forward-looking. Forward-looking statements and forward-looking information (collectively, "forward-looking statements") are based on the Company's internal expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information, including, among other things, assumptions with respect to production, drilling, construction and maintenance times, well completion times, risks associated with operations, future capital and operating expenditures, continued availability of financing for future capital expenditures, future acquisitions and dispositions and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. When used in this press release, the words and phrases like "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", “target”, “in the process of”, “on track” and similar expressions, and the negatives thereof, whether used in connection with operational activities, drilling plans, future Greater Stella Area field development programmes, production forecasts, budgetary figures, future operating costs, financing activities, anticipated net debt, anticipated funding requirements and uses of available credit under the Company’s debt facilities, potential developments including the timing and anticipated benefits of acquisitions and dispositions or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These forward-looking statements speak only as of the date of this press release. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws.
Additional information on these and other factors that could affect Ithaca’s operations and financial results are included in the Company’s Management Discussion and Analysis for the three and nine months ended 30 September 2017 and the Company’s Annual Information Form for the year ended 31 December 2016 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).