Ashurst has advised Iona Energy on its issuance of US$ 275 million senior secured bonds.

The purposes of the bond issue include refinancing Iona Energy's senior secured borrowing base facility, retirement of all or parts of its structured energy derivative transaction and the development of the Orlando and Kells projects.

The bond has the usual comprehensive security package including a charge over Iona Energy's interest in the Huntington, Trent & Tyne, Orlando and Kells fields.

The Ashurst team, led by oil and gas structured financing Partner Huw Thomas, included debt capital markets Consultant Stephen Edlmann, structured derivatives Counsel Kerion Ball and associates Alex Bartho, Grant Batten, Nicolas Szmigin and Marco Macchietto.

Huw Thomas commented: "We were delighted to advise Iona Energy on this financing. It is interesting to see how an increasing number of E&P companies are turning to the Norwegian high yield bond market as an additional source of liquidity."