The extension provides the firm with significant funding headroom ahead of first hydrocarbons from the Greater Stella Area in the second quarter of 2016.
Total bank debt facilities comprises a senior Reserve Based Lending (RBL) facility of US$575 million and junior RBL facility of US$75 million. The combined interest rate of the two bank debt facilities, fully drawn, is LIBOR +3.4% (previously 3.2%) prior to Stella coming on-stream, stepping down to LIBOR +2.9% (previously 2.9%) after Stella production has been established.
The banks in the debt syndicate are: BNP Paribas, Scotiabank, Deutsche Bank AG, Lloyds Bank, Royal Bank of Scotland, Barclays Bank PLC, Commonwealth Bank of Australia, Skandinaviska Enskilda Banken AB (publ), Société Générale and NIBC.
Graham Forbes, Chief Financial Officer, commented:
“We are pleased to have promptly and efficiently extended the tenor of our RBL facility on terms similar to our existing facility and converted our corporate facility from one based on historic covenants into a forward looking junior RBL thanks to the strong support of our banking syndicate.”
“The facilities are ‘right sized’ for our needs as we begin the process of deleveraging the business following completion of all offshore drilling operations prior to Stella first oil and receipt of the proceeds from the sale of the Norwegian business expected in Q3-2015.”
Ithaca Energy is focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries, the exploitation of its existing UK producing asset portfolio and a Norwegian exploration and appraisal business targeting the generation of discoveries capable of monetisation prior to development.