S&P puts Ithaca Energy on positive watch

S&P said it placed Ithaca Energy Inc.’s B- long-term corporate credit rating on CreditWatch with positive implications.

The agency also said it placed on positive watch the CCC rating on Ithaca's $300 million senior unsecured notes due 2019. The recovery rating remains at 6, indicating 5% expected default recovery.

The positive watch follows news that the company entered a definitive agreement with Israeli Holding Company Delek Group Ltd. for a cash takeover bid, S&P explained.

The transaction gives a market value of $1.24 billion to Ithaca Energy, the agency noted.

Delek already owns about 19.7% of Ithaca, S&P added.

The deal is subject to a minimum tender condition stipulating that more than 50% of the common shares, excluding Delek Group's current stake, are brought, the agency said.

If the transaction is finalized as planned, Delek Group will own at least a minimum controlling stake of 60% of Ithaca's common shares or even acquire full control, S&P said.

The companies are expected to announce the transaction's final details within the next 60 days, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.