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 undrawn.
"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.
Director, Investor Relations
Director, External Communications