Harvest Operations Corp. (TO: HTE-DBG) completed its offering of US $630 million aggregate principal amount of senior unsecured 2.125% notes due 2018.

According to the release, the notes have been rated A1/A+ by Moody's Investors Service and Standard & Poor's Rating Services, respectively. The notes are unconditionally and irrevocably guaranteed by Harvest's parent company Korea National Oil Corp.

Net proceeds will be used to repay borrowings of US $390 million under its US $400 million senior unsecured credit facility and for the purpose of the redemption of the 2015 debentures.

Barclays Capital, HSBC, Bank of America Merrill Lynch, and The Royal Bank of Scotland are joint book-runners and lead managers.

The notes have been registered on the Singapore Exchange Securities Trading Ltd.

Harvest will redeem on June 13 the aggregate C $236,579,000 principal amount outstanding of its 2015 debentures scheduled to mature on May 31, 2015. The 2015 debentures are listed for trading on the Toronto Stock Exchange under the trading symbol HTE.DB.G.

Upon redemption, Harvest will pay to the holders of 2015 debentures the redemption price equal to the outstanding principal amount of the 2015 debentures to be redeemed together with all accrued and unpaid interest thereon up to, but excluding the redemption date, for a total of some C $1,000 per C $1,000 principal amount of 2015 debentures. The 2015 debentures will cease to bear interest from and after the redemption date.
The redemption will be affected in accordance with the terms and definitions of the trust indenture and supplemental indenture governing the 2015 debentures.

Harvest expects that holders would no longer want to convert debentures as the conversion price of C $10 cash replaced the conversion into trust units. A holder who converts any Harvest debentures today will receive, in exchange for their converted debentures, a cash payment that is less than the principal amount converted. Holders of debentures are urged to consult their own financial advisors with respect to any conversion or other investment decisions in respect of their debentures.

Debenture holders who are not directly the registered holder of Harvest debentures should contact the financial institution, broker or other intermediary through which they hold their debentures to discuss the receipt of their redemption proceeds.

Harvest Operations Corp., a wholly owned subsidiary of Korea National Oil Corp., is an operator focused on exploration, development and production of crude oil and natural gas in Canada. The company is headquartered in Calgary.