New Issue: Ithaca Energy prices $300 million five-year senior notes at par to yield 8 1/8%

By Paul A. Harris

Portland, Ore., June 30 – Ithaca Energy Inc. priced a $300 million issue of five-year senior notes (Caa1/CCC+/) at par to yield 8 1/8% on Monday, according to a syndicate source.

The yield printed in the middle of the 8% to 8¼% yield talk.

Joint bookrunner Barclays will bill and deliver. BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and RBC Capital Markets were also joint bookrunners.

The Aberdeen, Scotland-based oil and gas exploration, development and production company plans to use the proceeds to repay bank debt.

Issuer:	Ithaca Energy Inc.
Amount:	$300 million
Maturity:	July 1, 2019
Securities:	Senior notes
Bookrunners:	Barclays (bill and deliver), BNP Paribas, Deutsche Bank Securities Inc., RBC Capital Markets
Co-managers:	Scotia Capital (USA) Inc., SEB AB
Coupon:	8 1/8%
Price:	Par
Yield:	8 1/8%
Spread:	650 bps
First call:	July 1, 2016 at 106.094
Equity clawback:	35% at 108.125 until July 1, 2016
Investor put:	101% upon change of control
Trade date:	June 30
Settlement date:	July 3
Ratings:	Moody’s: Caa1
	Standard & Poor’s: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	8% to 8¼%
Marketing:	Roadshow

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