CALGARY, June 3 /CNW/ - Suncor Energy Inc. reports that it has arranged
for the issuance of US$1.25 billion in principal amount of senior unsecured
notes maturing on June 1, 2018 (the "2018 Notes") and US$750 million in
principal amount of senior unsecured notes maturing on June 1, 2039 (the "2039
Notes", and collectively with the 2018 Notes, the "Notes"). The 2018 Notes
will have a coupon of 6.100% and be priced at 99.883% of par to yield 6.116%.
The 2039 Notes will have a coupon of 6.850% and be priced at 99.416% of par to
yield 6.896%. Suncor intends to add the net proceeds from the sale of the
Notes to its general funds, and to use such funds for its working capital
needs, sustaining and growth capital expenditures, and to repay outstanding
commercial paper borrowings. Pending any such use of proceeds, Suncor expects
to invest such proceeds in short-term money market instruments. Closing is
scheduled for June 6, 2008.
The Notes are expected to be assigned a rating of "A- (negative)" by
Standard & Poor's Rating Service (S&P) and "A3 (stable)" by Moody's Investors
The sale of the Notes will be completed under Suncor's shelf prospectus
dated February 20, 2007, as amended by Amendment No. 1 thereto dated May 28,
2008, and its prospectus supplement dated June 3, 2008. The offering was led
by Bank of America Securities LLC, Morgan Stanley, BNP Paribas and RBC Capital
Markets as joint book-running managers.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the Notes.
Suncor has filed a registration statement (including a prospectus) with
the U.S. Securities and Exchange Commission (the SEC) for the offering to
which this communication relates. Prospective investors should read the
prospectus in that registration statement and other documents Suncor has filed
with the SEC for more complete information about Suncor and this offering.
These documents are available free of charge on the EDGAR section of the SEC
Web site at www.sec.gov, or by contacting Bank of America Securities LLC (9
West 57th Street, New York, NY, 10019, tel:1-800-294-1322), Morgan Stanley &
Co. Incorporated (1585 Broadway, New York, NY, 10036, tel: 1-866-718-1649),
BNP Paribas Securities Corp. (787 Seventh Ave., New York, NY, 10019, tel:
1-800-854-5674), or RBC Capital Markets Corporation (One Liberty Plaza - 2nd
Floor, 165 Broadway, New York, NY, 10006, tel:1-866-375-6829).
This news release contains forward-looking statements identified by the
words "intends" and "expects" and similar expressions that addresses goals,
expectations or projections about the future. This statement is based on
Suncor's current goals, expectations, estimates, projections and assumptions,
as well as its current budgets and plans for capital expenditures. Such
statements are not guarantees of future performance. Actual results could
differ materially, as a result of factors, risks and uncertainties, known and
unknown, to which Suncor's business is subject. Further discussion of the
risks, uncertainties and other factors that could affect these plans, and any
actual results, is included in Suncor's annual report to shareholders and
other documents filed with regulatory authorities.
Suncor Energy Inc. is an integrated energy company headquartered in
Calgary, Alberta. Suncor's oil sands business, located near Fort McMurray,
Alberta, extracts and upgrades oil sands and markets refinery feedstock and
diesel fuel, while operations throughout Western Canada produce natural gas.
Suncor operates a refining and marketing business in Ontario with retail
distribution under the Sunoco brand. U.S.A. downstream assets include pipeline
and refining operations in Colorado and Wyoming and retail sales in the Denver
area under the Phillips 66(R) brand. Suncor's common shares (symbol: SU) are
listed on the Toronto and New York stock exchanges.
Suncor Energy (U.S.A.) Inc. is an authorized licensee of the Phillips
66 (R) brand and marks in the state of Colorado. Sunoco in Canada is separate
and unrelated to Sunoco in the United States, which is owned by Sunoco, Inc.
For further information:
For further information: Media inquiries: Brad Bellows, (403) 269-8717