Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

IGas Energy confirms it will cut out US$112mln of debt though its financial restructuring

IGas is bringing in up to US$60mln of new capital and exchanging around US$112mln of debt for new shares.
IGAS ENERGY TANKER TRUCK
The new share placing funding is backed by private equity investor Kerogen Capital

IGas Energy Plc (LON:IGAS) has revealed the extent of its proposed financial restructuring, with the debt-for-equity element expected to substantially reduce its debt.

The UK shale gas group told investors that it will reduce debt from US$122mln to a maximum of US$10mln by issuing new shares to its lenders.

At the same time, it is raising US$55mln of new equity in a share placing anchored by private equity group and cornerstone investor Kerogen Capital.

Existing shareholders will also be given the opportunity to buy new shares, via a US$5mln open offer.

All new shares will be issued at a price of 4.5p each (Thursday’s closing price was 5.25p).

IGas chief executive Stephen Bowler said: “We are pleased to announce the final terms of a restructuring package which, together with our new strategic investor, Kerogen, and the support of bondholders and shareholders would result in a strong balance sheet that, in this oil price environment, would enable us to focus on delivering the significant potential of our production and development assets.”

Jamie_55a91591db06b.jpg


Register here to be notified of future IGAS Company articles
View full IGAS profile View Profile

IGas Energy Plc Timeline

Related Articles

One of Iofina's plants in Oklahoma where it produces iodine from brine water taken as by product from oil fields
April 11 2017
A recent debt deal and the prospect of improving markets bode well for the AIM group's continuing recovery
picture of gas flare
Wed
A new gas generator also came on stream recently and has started to produce the first power from the project
picture of gas pipes
June 14 2017
The Ntorya-3 appraisal well may be delayed in favour of acquiring another batch of 3D seismic over the licence.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use