Ithaca Simplifies Debt Facilities Ahead of Stella Start-Up

North Sea-focused Ithaca Energy announced Wednesday that it has extended and simplified its bank debt financing facilities, providing it with "significant funding headroom" ahead of the start of production from its Greater Stella Area assets during the second quarter of 2016.

Ithaca said its total bank debt facilities now amount to $650 million, comprising a senior reserve-based lending facility of $575 million and a junior RBL facility of $75 million. The terms of both of these bank debt facilities have been extended to September 2018.

The firm's total debt funding capacity is now $950 million, which includes $300 million of senior unsecured notes that are due in July 2019. The forecast peak debt requirement prior to the start up of production at Stella will be between $825 million and $850 million during the second quarter of 2015, Ithaca said.

Ithaca Chief Financial Officer Graham Forbes commented in a company statement:

"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 3Q 2015."

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