Ithaca Energy Completes RBL Redetermination
Ithaca Energy Inc. announced having successfully completed its planned semi-annual reserves based lending (“RBL”) facilities review and continues to maintain in excess of $100 million of funding headroom ahead of planned first hydrocarbons from the Greater Stella Area in the third quarter of 2016.
The Company commenced deleveraging the business in 2015 with net debt reducing from a peak of over $800 million in the first half of 2015 to $630 million at 31 March 2016.
Following the RBL redetermination process the Company’s available bank debt capacity is over $430 million prior to Stella start-up. When combined with its $300 million senior unsecured notes this takes available debt to over $730 million, providing funding headroom in excess of $100 million.
Graham Forbes, Chief Financial Officer, commented:
“We are pleased to have efficiently completed the planned RBL redetermination process, reaffirming Ithaca’s robust financial position and ensuring continued financial flexibility to manage future risks and opportunities.”
The Company has in place two bank debt facilities, maturing September 2018, totalling $650 million; a senior RBL facility of up to $575 million and a junior RBL facility of up to $75 million. The availability to draw upon the facilities is reviewed by the bank syndicate on a semi-annual basis. The first amortisation step for the RBLs is January 2017, when the facility size will reduce to $535 million. Both RBL facilities are based on conventional oil and gas industry borrowing base financing terms, neither of which have historic financial covenant tests. In addition to the bank debt facilities, the Company has $300 million senior unsecured notes due July 2019.
The banks in the debt syndicate are: BNP Paribas, Scotiabank, Deutsche Bank AG, Lloyds Bank, Royal Bank of Scotland, Barclays Bank PLC, Commonwealth Bank of Australia, Skandinaviska Enskilda Banken AB (publ), Société Générale, NIBC and Wells Fargo.