MEG Energy Corp. (TO: MEG) priced its private offering of US $200 million additional 7% senior notes due 2024 at 101% of par to yield 6.83%.
The new notes are being offered as additional notes under the indenture, dated as of Oct. 1, 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 7% senior notes due 2024.
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.
Net proceeds will be used for general corporate purposes, including funding its 2014 capital program.
The new notes to be offered by MEG will not be registered under the U.S. Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. The new notes are being offered only to qualified institutional buyers in the U.S. under Rule 144A and outside the U.S. in compliance with Regulation S under the U.S. Securities Act. In Canada, the new notes are to be offered and sold on a private placement basis in certain provinces of Canada.
MEG Energy Corp. is an independent energy company engaged in the development and production of in situ oil sands in Alberta. The company is headquartered in Calgary.