MEG Energy Corp. (“MEG” or the “Company”) (TSX: MEG) announced today that, subject to market and other conditions, it plans to commence a private offering (the “offering”) of US$600 million in aggregate principal amount of senior unsecured notes due 2029 (the “notes”). MEG intends to use the net proceeds of the offering, if completed, and cash on hand to (i) redeem in full its US$600 million aggregate principal amount of 7.0% senior unsecured notes due March 2024 (the “2024 Notes”), and (ii) pay fees and expenses related to the offering.
MEG also announced today that it has issued a conditional notice to redeem in full MEG’s 2024 Notes at a redemption price of 101.167%, plus accrued and unpaid interest to, but not including, the redemption date. The redemption is expected to be completed on or about February 18, 2021, and the redemption of the 2024 Notes is conditioned upon the completion of the offering.
The notes to be offered by MEG will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The notes are being offered only to persons reasonably believed to be qualified institutional buyers in the United States under Rule 144A and outside the United States in compliance with Regulation S under the U.S. Securities Act. In Canada, the notes are to be offered and sold on a private placement basis in certain provinces of Canada. This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.