Pengrowth Energy Corporation Announces Successful Issuance of

Pengrowth Energy Corporation Announces Successful Issuance of US$385
Million Equivalent of Senior Unsecured Notes 
CALGARY, ALBERTA -- (Marketwire) -- 10/18/12 -- Pengrowth Energy
Corporation (TSX:PGF) (NYSE:PGH) is pleased to announce the
completion of a private placement of senior unsecured notes. The
offering was completed in the United States and Canada with an
aggregate of US$385 million equivalent principal amount of notes
being issued.  
The notes were issued in five tranches with interest rates ranging
from 3.45 percent to 4.74 percent and maturities ranging from seven
to 12 years as follows: 

--  US$35 million of 3.49 percent notes due in 2019 
--  GBP 15 million of 3.45 percent notes due in 2019 
--  US$105 million of 4.07 percent notes due in 2022 
--  CDN$25 million of 4.74 percent notes due in 2022 
--  US$195 million of 4.17 percent notes due in 2024

The notes are unsecured and rank equally with Pengrowth's bank
facilities and existing term notes. The proceeds from the notes will
be used to pay down indebtedness under Pengrowth's current credit
facilities and to increase working capital.  
"We are very pleased that we have been able to complete this
long-term notes offering," said Derek Evans, Pengrowth's President
and Chief Executive Officer. "This transaction locks in our interest
costs at attractive rates for up to twelve years. In addition, it
improves our overall financial flexibility, with over $850 million of
undrawn borrowing capacity now available. We are well positioned to
seize opportunities as they present themselves, with debt maturities
staggered over the next 12 years and no near term constraints on the
balance sheet." 
Citigroup Global Markets Inc. acted as sole book runner and exclusive
lead placement agent in connection with the private placement. TD
Securities USA LLC and Mitsubishi UFJ Securities USA Inc. acted as
co-agents on the private placement. The notes have not been and will
not be registered under the United States Securities Act of 1933, as
amended (the "Securities Act"), and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of the Securities Act. 
About Pengrowth:  
Pengrowth Energy Corporation is a dividend-paying, intermediate
Canadian producer of oil and natural gas, headquartered in Calgary,
Alberta. Pengrowth's assets include Swan Hills light oil, Cardium
light oil and the Lindbergh thermal project. Pengrowth's shares trade
on both the Toronto Stock Exchange under the symbol "PGF" and on the
New York Stock Exchange under the symbol "PGH". 
Derek Evans, President and Chief Executive Officer
Investor Relations
(403) 233-0224 or Toll Free: 1-888-744-1111
Press spacebar to pause and continue. Press esc to stop.