Ithaca Bank announced that BNP Paribas acted as sole bookrunner and mandated lead arranger in extending its debt financing facilities and oil sales agreements.

The deal increased existing reserve-based lending 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, and it established a new five-year $100 million corporate facility, providing additional funding flexibility to add new appraisal / development opportunities to the existing portfolio.

Xavier Venereau, global head of Structured Debt, Oil & Gas at BNP Paribas, said, “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.”

Graham Forbes, chief financial officer, says, “I am delighted to close a heavily oversubscribed 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.”

Ithaca Energy 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 monetization prior to development.

To read the entire press release, click here.