MEG Energy Launches US$1.2 Billion Offering of Senior Notes

By Isha Makkar
January 16, 2020
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Water Management at MEG Energy's Christina Lake Project

Toronto-listed oil sands developer MEG Energy Corp. plans to issue US$1.2 billion aggregate principal amount of senior unsecured notes. The note offering has been upsized from a US$800 million offering that was announced earlier today. The notes will bear interest at 7.125% p.a. and are due in 2027. The Company intends to use the net proceeds of the offering, together with cash on hand, to refinance US$800 million of its existing senior unsecured notes due in January 2023 and to redeem US$400 million of its US$1.0 billion of senior unsecured notes due March 2024. The offering is expected to close on January 31st. MEG Energy is engaged in the steam-assisted gravity drainage (SAGD) development of oil sands resources in the southern Athabasca region of Alberta, with a primary focus at present on its Christina Lake Project.

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