MEG Energy announces pricing of an offering of additional 7.0% Senior Notes
CALGARY, Nov. 1, 2013 /CNW/ - MEG Energy Corp. announced today that it has
priced, at 101.0 percent of par to yield 6.83%, an offering of an additional
US $200 million in aggregate principal amount of 7.0% senior notes due March
31, 2024 (the "New Notes"). The New Notes are being offered as additional
notes under the indenture, dated as of October 1, 2013, among MEG, MEG Energy
(U.S.) Inc. and Wilmington Trust, National Association, as trustee, pursuant
to which MEG previously issued a total of US $800 million in aggregate
principal amount of its 7.0% senior notes due March 31, 2024 (the "Prior
The New Notes will be treated as a single series with the Prior Notes, will
have substantially the same terms as the Prior Notes and will trade fungibly
with the Prior Notes.
MEG intends to use the net proceeds for general corporate purposes, including
funding its 2014 capital program. The closing of the offering is expected to
occur on November 6, 2013, subject to the satisfaction of customary closing
The Senior Notes to be offered by MEG will not be registered under the U.S.
Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be
offered or sold in the United States absent registration or an applicable
exemption from registration requirements. The Senior Notes are being offered
only to qualified institutional buyers in the United States under Rule 144A
and outside the United States in compliance with Regulation S under the U.S.
Securities Act. In Canada, the Senior Notes are to be offered and sold on a
private placement basis in certain provinces of Canada.
This news release does not constitute an offer to sell, or a solicitation of
an offer to buy, any security and shall not constitute an offer, solicitation
or sale in any jurisdiction in which such an offer, solicitation, or sale
would be unlawful.
This news release may contain forward-looking information including but not
limited to the potential for an offering and issuance of Senior Notes by MEG
and the use of proceeds therefrom. 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 offering documentation prepared and delivered by MEG
in connection with the note issuance.
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."
SOURCE MEG Energy Corp.
Investors Helen Kelly Director, Investor Relations 403-767-6206
Media Brad Bellows Director, External Communications 403-212-8705
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CO: MEG Energy Corp.
NI: OIL NEWSTK
-0- Nov/01/2013 19:04 GMT
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