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Ithaca Energy Inc: New Debt Facilities

Ithaca Energy Inc: New Debt Facilities 
ABERDEEN, SCOTLAND -- (Marketwired) -- 10/10/13 --  Ithaca Energy Inc
 (TSX VENTURE: IAE) (LSE: IAE) *T 
TSX VENTURE: IAE 
Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States 
Ithaca Energy Inc. 
New Debt Facilities 
10 October 2013 
Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company")
announces that it has executed extended and improved long term senior
bank debt financing facilities and oil sales agreements. 
Highlights 
* Increased existing Reserve Based Lending ("RBL") facility from
  $430 million to $610 million, with enhanced terms in the form of a
  reduced margin cost and greater flexibility over future unallocated
  capital.This has enabled retirement of the $350 million bridge credit
  facility established to facilitate the Valiant Petroleum plc
  ("Valiant") acquisition in April 2013. 
* Established a new five year $100 million corporate facility,
  providing additional funding flexibility to add new appraisal /
  development opportunities to the existing portfolio. 
Graham Forbes, Chief Financial Officer, commented:"I am delighted to close
a heavily over-subscribed debt facility
process, with a leading group of experienced oil and gas sector banks,
and to be delivering improved financial terms and flexibility
associated with the Company's senior debt funding.It is also
particularly pleasing to put in place a corporate facility, which
underlines the graduation of the Company into that of a leading
independent North Sea oil and gas operator". 
Xavier Venereau, Global Head of Structured Debt, Oil & Gas, at BNP
Paribas, commented:"Ithaca is a very important client for BNP Paribas in
the North Sea and
we are delighted to continue our support of the Company through the
establishment of these two new debt facilities. After having
successfully completed the acquisition of Valiant, Ithaca has continued
to actively monitor its portfolio and its developments. The Company
has an attractive portfolio of assets and an excellent reputation in
the debt market, which was clearly demonstrated by the significant
interest shown by banks in these new facilities. We look forward to
continuing our support of the Company and its growth strategy". 
Further Information 
The $610 million RBL facility replaces both the existing $430 million
RBL facility that was put in place in May 2012 and the $350 million
bridge credit facility that was established in March 2013 to facilitate
Ithaca's acquisition of Valiant.This increased RBL facility is based
on conventional oil and gas industry borrowing base financing terms,
with a loan term until June 2017, and is available to fund on-going
development activities and any producing asset acquisitions. 
Restrictions on the previous RBL facility regarding the distribution of
unallocated capital have been reduced, thereby allowing the Company to
consider the optimal allocation of future cashflow upon the
commencement of production from the Greater Stella Area hub. 
The corporate facility provides additional financial flexibility for
the Company to continue to deliver upon its strategy of securing lower
risk organic growth such as the acquisition and appraisal of
undeveloped discoveries that have a strong fit within the existing
portfolio.This facility is based on normal corporate debt covenants,
relating to EBITDAX ("Earnings before Interest Tax Depreciation,
Amortisation and Exploration costs") coverage of debt and interest
obligations. 
Syndicate Banks 
The banks involved in the financing facilities and respective roles in
the RBL facility are as follows: 
*  BNP Paribas & Scotiabank - Bookrunners and Mandated Lead 
Arrangers. 
*  Deutsche Bank AG, Lloyds Bank, Royal Bank of Scotland, Barclays 
Bank PLC, Commonwealth Bank of Australia, Skandinaviska Enskilda 
Banken AB (publ) and Societe Generale - Mandated Lead Arrangers. 
*  NIBC - Manager. 
BNP Paribas was also sole Bookrunner and Mandated Lead Arranger of the
corporate facility. 
Oil Sales Agreements 
As part of completing the integration of the Valiant assets into the
Company's oil sales arrangements, Ithaca has entered into an extension
of its existing agreement with BP Oil International Limited for the
marketing of niche grade crudes and its oil sales agreement with Shell
Trading International Limited ("Shell") for production from the Cook,
Dons, Causeway Area and Broom producing fields.Future volumes from
the Stella field may also be included.This latter agreement includes
the ability for Ithaca, at its option, to receive pre-payments for
future crude sales to Shell. 
- ENDS - 
Enquiries: 
Ithaca Energy
Graham Forbes    gforbes@ithacaenergy.com           +44 (0)1224 652 151
Richard Smith    rsmith@ithacaenergy.com            +44(0) 1224 652 172 
FTI Consulting
Billy Clegg      billy.clegg@fticonsulting.com      +44 (0)207 269 7157
Edward Westropp  edward.westropp@fticonsulting.com  +44 (0)207 269 7230
Georgia Mann     georgia.mann@fticonsulting.com     +44 (0)207 269 7212 
Cenkos Securities
Jon Fitzpatrick   jfitzpatrick@cenkos.com           +44 (0)207 397 8900
Neil McDonald     nmcdonald@cenkos.com              +44 (0)131 220 6939 
RBC Capital Markets
Tim Chapman       tim.chapman@rbccm.com             +44 (0)207 653 4641
Matthew Coakes    matthew.coakes@rbccm.com          +44 (0)207 653 4871 
BNP Paribas
Sue Mingay        sue.mingay@uk.bnpparibas.com      +44 (0)207 595 3455
Xavier Venereau   xavier.venereau@bnpparibas.com    +33 (0)1 4316 8212 
About Ithaca Energy 
Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas
operator 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 centred on the generation
of discoveries capable of monetisation prior to development. Ithaca's
strategy is centred on generating sustainable long term shareholder
value by building a highly profitable 25kboe/d North Sea oil and gas
company. For further information please consult the Company's website
www.ithacaenergy.com. 
Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States 
Notes"EBITDAX" is defined as earnings before interest, taxes, Depreciation,
Amortisation and Exploration costs. EBITDAX is a supplemental non-GAAP
financial measure that is not recognized under international financial
reporting standards ("IFRS") and does not have a standardized meaning
prescribed by IFRS. EBITDAX should not be considered as an alternative
to, or more meaningful than, net profit and comprehensive income or
cash flows from operating activities as determined in accordance with
IFRS or as an indicator of operating performance or liquidity.
Management believes that EBITDAX is a useful supplemental measure as it
provides an indication of the results generated by the principal
business activities. The computations of EBITDAX may not be comparable
to other similarly titled measures of other companies, and accordingly
EBITDAX may not be comparable to measures used by other companies. 
Forward-looking statements 
Some of the statements and information in this press release are
forward-looking. Forward-looking statements and forward-looking
information (collectively, "forward-looking statements") are based on
the Company's internal expectations, estimates, projections,
assumpti
ons and beliefs as at the date of such statements or
information, including, among other things, assumptions with respect to
production, drilling, well completion times, future capital
expenditures, future acquisitions, potential future acquisition and
development opportunities, cash flow, future allocation of cashflow
from operations, potential for shareholder returns and uses of
available credit under the debt facilities. The reader is cautioned
that assumptions used in the preparation of such information may prove
to be incorrect. When used in this press release, the words"anticipate",
"continue", "estimate", "expect", "may", "will","project", "plan",
"should", "believe", "could", "target" and similar
expressions, and the negatives thereof, whether used in connection with
operational activities, production forecasts, budgetary figures,
potential developments or otherwise, are intended to identify
forward-looking statements. Such statements are not promises or
guarantees, and are subject to known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking statements.
The Company believes that the expectations reflected in those
forward-looking statements are reasonable but no assurance can be given
that these expectations, or the assumptions underlying these
expectations, will prove to be correct and such forward-looking
statements included in this press release should not be unduly relied
upon. These forward-looking statements speak only as of the date of
this press release. Ithaca Energy Inc. expressly disclaims any
obligation or undertaking to release publicly any updates or revisions
to any forward-looking statement contained herein to reflect any change
in its expectations with regard thereto or any change in events,
conditions or circumstances on which any forward-looking statement is
based except as required by applicable securities laws. 
This information is provided by RNS 
The company news service from the London Stock Exchange 
END 


 
 
 
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