Ithaca buckles on bond terms under investor pressure
Ithaca Energy, a UK-based oil and gas operator, revised its bond terms to placate investors this week — marking a rare victory for the buy-side in a market that has offered ever weaker protection. Buyers for the bonds had been prepared to swallow Ithaca's original proposals, but demanded a double digit yield to do so, forcing the borrower to back down to hit its target price. Karoliina Liimatainen reports.
Ithaca Energy was raising money for the $2bn acquisition of Chevron’s North Sea oilfields. The revised terms, added after a deal roadshow last week, include a rare investor put option requiring Ithaca to repurchase a chunk of the seven year bonds after three years.The company also cut down ...
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