Ithaca Energy Limited (“Ithaca” or the “Company”) reports that its wholly-owned subsidiary Ithaca Energy (North Sea) plc (the “Issuer”) has launched an offering of $700 million in aggregate principal amount of senior notes due 2024 (the “Notes”) in connection with the previously announced acquisition of Chevron North Sea Limited (“CNSL”). Pending consummation of the acquisition, the proceeds of the Notes will be deposited into an escrow account.
Upon completion of the acquisition, the proceeds of the Notes will be released from escrow and together with drawings under the Company’s reserves based lending facility, existing cash resources and equity from the Company’s sole shareholder, Delek Group Limited, will be used to (i) fund part of the CNSL acquisition purchase price; (ii) repay in full amounts outstanding under certain of the Company’s existing debt facilities and (iii) pay related fees and expenses. Interest on the Notes will be payable semi-annually. The interest rate, offering price and other terms will be determined at the time of pricing of the offering, subject to market conditions.