CALGARY, May 24, 2013 /CNW/ - MEG Energy Corp. ("MEG") today announced
that it has expanded its senior secured revolving credit facility from
US$1.0 billion to US$2.0 billion and has extended the maturity of the
revolving credit facility by one year to 2018. The transaction was
completed through an amendment of MEG's credit agreement. The revolving
credit facility retains its covenant-lite structure and is currently
"The expansion of our credit facility provides MEG with additional
financial flexibility under favourable terms," said Bill McCaffrey,
President and Chief Executive Officer. "While our plans to increase
production to 80,000 barrels per day by early 2015 are fully funded,
additional revolving credit capacity complements our marketing efforts
as we expand the reach of our product sales to higher-value markets."
BMO Capital Markets and Barclays Bank PLC acted as Joint Lead Arrangers
and Joint Bookrunners for the transaction.
This press 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 MEG's planned increases in production, the funding
required to achieve such increases in production, the expansion of and
relative value of future markets for MEG's production and the financial
flexibility achieved by the expansion of MEG's revolving credit
facility. Such forward-looking information is based upon certain
assumptions and predictions made by MEG. Whether actual results,
performance or achievements will conform to such assumptions and
predictions is subject to a number of known and unknown risks and
uncertainties which may cause actual results to differ materially from
MEG's expectations. For supplemental information regarding the
assumptions, risks and factors relating to such forward-looking
information, please refer to MEG's annual information form dated
February 27, 2013 (the "AIF"). Copies of the AIF and of MEG's other
public disclosure documents are available through the SEDAR website (www.sedar.com) or by contacting MEG's investor relations department.
MEG 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.
For further information:
Director, Investor Relations
Director, External Communications