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 Notes").
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 conditions.
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.
For further information:
Director, Investor Relations
Director, External Communications