MEG Energy announces closing of $400 million public bought deal common share
financing and concurrent $400 million private placement common share financing
/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED
CALGARY, Dec. 28, 2012 /CNW/ - MEG Energy Corp. ("MEG") announced today that
it has closed its recently announced bought deal financing (the "Public
Offering") and concurrent private placement (the "Private Placement") of
common shares. A total of 12,125,000 common shares have been issued pursuant
to the Public Offering and 12,121,212 common shares have been issued pursuant
to the Private Placement to Caisse de dépôt et placement du Québec, at a
price of $33.00 per share, for aggregate gross proceeds of approximately $800
million. The associated over-allotment option granted to the underwriters in
connection with the Public Offering can be exercised at any time until and
including 30 days from today's closing.
The Public Offering was issued through a syndicate of underwriters co-led by
BMO Capital Markets, Credit Suisse Securities (Canada), Inc., Barclays Capital
Canada Inc. and RBC Capital Markets and included CIBC World Markets, HSBC
Securities (Canada) Inc. and Morgan Stanley Canada Limited. BMO Capital
Markets and Credit Suisse Securities (Canada) Inc. acted as joint agents to
MEG on the Private Placement.
The net proceeds of the Public Offering and the Private Placement, together
with cash on hand and MEG's projected 2013 cash flow, are expected to fully
fund MEG's 2013 capital budget, which was announced on December 10, 2012 and
is available on MEG's website at www.megenergy.com or on www.sedar.com.
The common shares subject to the Public Offering and the Private Placement
have not been registered under the U.S. Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent such registration
or an applicable exemption from such registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an offer
to buy nor shall there be any sale of the common shares in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
This news release contains forward-looking information, including but not
limited to the use of proceeds from the Public Offering and Private Placement,
projected 2013 cash flow and the ability to fully fund MEG's 2013 capital
budget. Such forward-looking information is based on certain assumptions and
analysis made by MEG in light of its experience and perception of current
conditions and expected future developments as well as other factors it
believes are appropriate in the circumstances. However, whether actual
results, performance or achievements will conform to MEG's expectations and
predictions is subject to market conditions and a number of known and unknown
risks and uncertainties which could cause actual results to differ materially
from MEG's expectations. Other factors which could materially affect such
forward-looking information are described in the risk factors detailed in the
continuous disclosure documents filed by MEG on SEDAR at www.sedar.com.
MEG is focused on sustainable in situ oil sands development and production in
the southern Athabasca region of Alberta, Canada. MEG is actively developing
enhanced oil recovery projects that utilize SAGD extraction methods. MEG's
common shares are listed on the Toronto Stock Exchange under the symbol "MEG."
MEG Energy Corp. is focused on sustainable in situ oil sands development and
production in the southern Athabasca oil sands region of Alberta, Canada. MEG
is actively developing enhanced oil recovery projects that utilize SAGD
extraction methods. MEG's common shares are listed on the Toronto Stock
Exchange under the symbol "MEG."
Investors Helen Kelly Director, Investor Relations 403-767-6206
Media Brad Bellows Director, External Communications 403-212-8705
SOURCE: MEG Energy Corp.
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CO: MEG Energy Corp.
NI: OIL PVT FIN
-0- Dec/28/2012 15:03 GMT
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