Peyto Announces Closing of Private Placement of Senior Notes and
Expansion of Borrowing Base
CALGARY, ALBERTA -- (Marketwire) -- 09/06/12 -- Peyto Exploration &
Development Corp. (TSX:PEY) ("Peyto") announced today that it has
issued CDN $50 million of senior secured notes pursuant to a note
purchase and private shelf agreement with Prudential Investment
Management, Inc. The notes were issued by way of private placement
and rank equally with Peyto's obligations under its bank facility.
The notes have a coupon rate of 4.88% and mature on September 6,
2022. Interest will be paid semi-annually in arrears. Proceeds from
the notes will be used to repay a portion of Peyto's outstanding bank
Peyto is also pleased to announce that its syndicate of lenders has
expanded the company's borrowing base to $880 million of total
borrowing capacity, subsequent to the completion of the Open Range
Energy acquisition. Peyto's revolving bank facility has been
increased to $730 million while the total amount of senior secured
notes issued under the private shelf agreement is now $150 million.
Peyto's syndicate of lenders, led by Bank of Montreal, includes:
Union Bank, Canada Branch; Royal Bank of Canada; Canadian Imperial
Bank of Commerce; HSBC Bank Canada; Toronto-Dominion Bank; Alberta
Treasury Branches; and Canadian Western Bank.
As previously announced on August 14, 2012, Peyto has closed the
acquisition of Open Range Energy. Drilling on the former Open Range
lands is expected to commence by September 20, 2012 on the first of
over 100 identified locations while pipeline activity has already
connected Peyto third party processed production to the newly
acquired facilities. Peyto now has eight drilling rigs running in the
Deep Basin making it currently the most active deep gas driller in
Alberta. This is made possible during the current period of depressed
natural gas prices by Peyto's industry leading low cost advantage.
Shareholders and interested investors are encouraged to visit the
Peyto website at www.Peyto.com to learn more about what makes Peyto
one of North America's most exciting energy companies.
Certain information set forth in this document, including the use of
proceeds from the senior notes, contains forward-looking statements.
By their nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond Peyto's control,
including the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations,
imprecision of reserve estimates, environmental risks, competition
from other industry participants, the lack of availability of
qualified personnel or management, stock market volatility and
ability to access sufficient capital from internal and external
sources. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
Peyto's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that Peyto will derive therefrom.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
Peyto Exploration & Development Corp.
President and Chief Executive Officer
(403) 451-4100 (FAX)
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