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CALGARY, Nov. 28, 2014 /CNW/ - (TSX:PMT) – Perpetual Energy Inc. ("Perpetual" or the "Corporation") is pleased to announce that the Corporation has provided notice for the early partial redemption on December 31, 2014 of $25,000,000 of the aggregate principal amount of $59,878,000 of 7.00% Convertible Unsecured Junior Subordinated Debentures (the "Debentures") (TSX:PMT.DB.E) outstanding. The debentures mature on December 31, 2015.
Perpetual is targeting full year 2015 capital spending to be largely funded by 2015 cash flow. The Company is also continuing to pursue additional asset sales in 2015 with funds anticipated to be utilized to strengthen the balance sheet and enhance financial flexibility. It is presently Perpetual's intention to repay the remaining outstanding principal amount of the Debentures of $34,878,000 in cash on or prior to the maturity date of December 31, 2015.
Certain information regarding Perpetual in this news release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws. The forward looking information includes, without limitation, the ability to fund 2015 capital spending with cash flow, the pursuit of additional asset sales in 2015 and the use of proceeds and benefits to be derived therefrom and the timing for the redemption or repayment of the Debentures. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release, which assumptions are based on management analysis of historical trends, experience, current conditions and expected future developments pertaining to Perpetual and the industry in which it operates as well as certain assumptions regarding the matters outlined above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Perpetual and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties, including without limitation those described under "Risk Factors" in Perpetual's MD&A for the year-ended December 31, 2013 and those included in other reports on file with Canadian securities regulatory authorities which may be accessed through the SEDAR website (www.sedar.com) and at Perpetual's website (www.perpetualenergyinc.com). Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of Perpetual's management at the time the information is released and Perpetual disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities law.
SOURCE: Perpetual Energy Inc.
For further information: Perpetual Energy Inc., Suite 3200, 605 - 5 Avenue SW Calgary, Alberta, Canada T2P 3H5, Telephone: 403 269-4400, Fax: 403 269-4444, Email: [email protected]; Susan L. Riddell Rose, President and Chief Executive Officer; Cameron R. Sebastian, Vice President, Finance and Chief Financial Officer; Claire A. Rosehill, Investor Relations and Business Analyst