CALGARY, Nov. 30, 2011 /CNW/ - Penn West Petroleum Ltd. ("Penn West") (TSX:PWT) (NYSE: PWE) confirms the closing of its previously announced issuance of senior
unsecured notes with aggregate principal amounts of approximately $135
million. The notes were issued on a private placement basis in the
United States and Canada.
The notes issued have an average term of 8.1 years and an average
interest rate of 4.49 percent. The notes are unsecured and rank equally
with Penn West's bank facilities and Penn West's existing senior notes.
The proceeds of the notes were used to repay a portion of Penn West's
advances under its credit facilities. Penn West's portfolio of senior
unsecured notes now totals approximately $2.0 billion and comprises
approximately 63 percent of its debt capital.
Non-resident withholding tax
Penn West wishes to advise all shareholders that the Canada Revenue
Agency ("CRA") has introduced new rules which may require residents of
countries with which Canada has a tax treaty to certify that they are
eligible for treaty benefits in that country in order to continue to
have non-resident tax withheld at the tax rate specified by the
applicable tax treaty (the "Tax Treaty Rate"). Income tax treaties between Canada and foreign countries generally
provide for a lower rate of withholding tax to be deducted from various
kinds of income payments to non-residents of Canada, including
Registered non-resident shareholders whose names appear on the records
of the registrar and transfer agent of Penn West will receive a form
directly from Penn West's transfer agent requesting information to
confirm tax treaty eligibility. Until such form is completed and
returned to Penn West's transfer agent, any applicable Tax Treaty Rate
will not be applied. To qualify for any applicable Tax Treaty Rate on
Penn West's fourth quarter dividend of $0.27 per share payable on
January 13, 2012, registered non-resident shareholders must return such
form to Penn West's transfer agent on or before December 30, 2011.
Non-registered, non-resident shareholders' eligibility for any
applicable Tax Treaty Rate will be determined by each shareholder's
broker and not by Penn West or its transfer agent. Non-registered
shares are generally held in a brokerage account and are thus
registered in the name of the investor's broker or a depositary.
Certain brokers may require additional information or certifications in
order to determine a non-registered shareholder's eligibility for any
applicable Tax Treaty Rate. Non-resident, non-registered shareholders
are encouraged to contact their brokers or other tax, legal or
financial advisors in the event that they have any questions or
concerns in this regard.
The foregoing tax related information is provided for information
purposes only. The information is of a general nature only, is not
exhaustive of all tax considerations and is not intended to constitute
legal or tax advice to any investor. Penn West encourages shareholders
to seek advice from their respective broker or tax, legal or financial
advisor for additional information relating to the status of their
residency for tax purposes.
Penn West Exploration common shares and debentures are listed on the
Toronto Stock Exchange under the symbols PWT and PWT.DB.F and Penn West
Exploration common shares are listed on the New York Stock Exchange
under the symbol PWE.
SOURCE Penn West Exploration
For further information:
PENN WEST EXPLORATION
Suite 200, 207 - 9th Avenue SW
Calgary, Alberta T2P 1K3
Toll Free: 1-866-693-2707
Murray Nunns, President & Chief Executive Officer
Jason Fleury, Senior Manager, Investor Relations
Toll Free: 1-888-770-2633