Introduction In September 2013, Iona Energy Company (UK) plc (Iona) issued US275 million in senior secured bonds (the Bonds) Current outstanding bonds of US292 million following March 2015 PIK interest payment Today, Iona…
Transaction Proposal Summary Current status Restructuring Pro Forma US292m debt US120m debt Farm-Out Orlando unfunded to first oil Orlando fully funded to first oil plus project cost reduced Ronan & Oran stranded and execution…
Farm-Out Highly credible partner to be introduced to both Orlando and Ronan & Oran Counterparty is E&P subsidiary of a large European energy company with an investment grade credit rating Orlando farm-out Sale of 25% interest…
Industry Funding / Capex Savings Four key industry partners to provide 2015-2016 Gross Orlando loans / defer payment for services Capex Progression Total financing being provided of 250 US32.9 million (net to pro forma 50%…
Bond Restructuring Currently US292 million of bond debt outstanding(1) Bond Debt Outstanding 350 US24 million of bonds being repaid 300 18 24 Outstanding bond debt being reduced to US120 million 250 190 Excess debt (plus…
Comparable debt to equity swaps Average of 96% dilution to existing equity holders in comparable situations alternatives available to Iona were significantly less favourable to shareholders Page 8
Amended and Restated Bond Terms Summary Item Summary Covenants No financial covenants Quarterly liquidity covenant confirming liquidity sufficient to deliver first oil at Orlando First oil covenant with first oil at Orlando required…
Process Irrevocable support received from 62% of bondholders to vote in favour of the Restructuring Bondholder meeting to be held on August 6, 2015 with 2/3rds support required Challenging implementation schedule with completion of…
Revisit of 2015 AGM Goals At AGM (Feb Today 15) Hedging in place at US80/bbl through 2015 Delivered Delivered Reduced G&A costs to maximise cash Delivered Delivered Orlando development Capex reduction Part delivered Delivered A long…
Restructuring Summary Successful implementation of the Restructuring will result in: Fully funded Orlando Orlando execution de-risked and service providers aligned with successful project delivery Introduction of a strong…
Iona 2015-2016 Goals Complete Restructuring Deliver first production from Orlando Grow production via acquisition Refinance the Bonds with acquisition Complete acquisition and refinancing prior to Orlando first…
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