CALGARY, July 16, 2012 /CNW/ - MEG Energy Corp. today disclosed the
pricing and an increase in the size of its previously announced senior
unsecured notes offering (the "Notes Offering"). Due to the positive
market reception for the Notes Offering, MEG is increasing the total
size of the offering to US$800 million from US$700 million. The senior
unsecured notes will bear interest at 6.375% per annum and are due in
2023. MEG intends to use the net proceeds of the Notes Offering for
general corporate purposes.
The closing of the Notes Offering, which is subject to customary
conditions, is expected to occur on July 19, 2012. The senior unsecured
notes being 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
unsecured 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 unsecured notes are being offered on a private
placement basis in certain provinces of Canada. 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
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.
For further information:
Director, Investor Relations
Director, External Communications