Ithaca Energy PLC on Wednesday noted that its subsidiary, Ithaca Energy North Sea, has begun a refinancing of its existing debt facilities through a total of $700 million senior notes due in 2029.

The London-based oil and gas company operating in the North Sea said that Ithaca Energy UK Ltd has received $1.24 billion of contingent commitments, in respect of its reserve based lending facilities agreement maturing in 2029.

Gross proceeds, alongside $85 million of cash on hand, will be used to redeem in full the company’s existing $625 million aggregate principal amount of 9% senior notes due in 2026, to repay amounts drawn under an existing loan and to pay certain refinancing-related fees and expenses.

The refinancing follows Ithaca Energy’s combination of substantially all of Eni Spa’s upstream operations in the UK in early October. The deal excludes assets in the East Irish Sea, as well as carbon capture, utilisation and storage activities, and was funded through the issue to Eni of new Ithaca shares amounting to around 39% of the enlarged issued share capital. The Rome-based energy company is now the largest shareholder in Ithaca Energy.

Ithaca Energy Chair Yaniv Friedman said: ‘Our transformational business combination with Eni UK marks an exciting new chapter in Ithaca Energy’s journey, creating a dynamic growth player with significant organic and inorganic investment optionality. Today’s announcement is evidence of what this combination allows us to achieve, and further signifies our intentions for further growth and the importance we place on maintaining a robust financial framework to support these ambitions.’

Shares in Ithaca Energy were down 1.1% at 104.00 pence each in London on Wednesday afternoon.

Eni Spa shares were down 0.9% at €14.07 each in Milan.

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