IPC Completes USD 300 Million Bond Placement

January 20, 2022


IPC Completes USD 300 Million Bond Placement

January 20, 2022153.65 KB

International Petroleum Corporation ("IPC" or the "Corporation") (TSX, Nasdaq Stockholm: IPCO) announces that it has successfully completed a private placement of USD 300 million of senior unsecured bonds. The bonds will have a tenor of five years and will have a fixed coupon rate of 7.25 percent per annum, with interest payable in semi-annual instalments. The bond issue is expected to be rated B+ by S&P Global Ratings and B1 by Moody’s.

Settlement of the bonds is expected to occur on or around February 1, 2022, subject to the satisfaction of customary conditions precedent. IPC intends to make an application to list the bonds on the Oslo Stock Exchange. Net proceeds of the bonds will be used to repay IPC’s existing indebtedness under bank credit facilities and for general corporate purposes. Arctic Securities and Pareto Securities acted as Joint Lead Managers, and SpareBank 1 Markets acted as Co-Manager, in connection with the bond placement. Mike Nicholson, Chief Executive Officer of IPC comments:

“We are very pleased to be launching IPC’s first USD 300 million bond issue today, accessing the debt capital markets at a favourable time. We strongly believe that the winners in the next phase of the energy transition in the upstream oil and gas industry will be those companies that are able to access diverse sources of funding. Whilst we do not have an imminent acquisition, we believe that being able to demonstrate to sellers that IPC has the financial strength on its balance sheet, will enable IPC to access a greater universe of opportunities whilst differentiating us from our peers in terms of certainty of being able to close transactions.”