CALGARY, ALBERTA–(Marketwired – Dec. 21, 2016) – Pengrowth Energy Corporation (TSX:PGF)(NYSE:PGH) (“Pengrowth” or the “Company”) announces an update to its plan regarding the early redemption of its outstanding 6.25% convertible unsecured subordinated debentures due March 31, 2017 (the “Debentures”). As a result of ongoing negotiations with its term noteholders, to amend certain covenants in the notes and to extend the terms of some series of notes, the Company has agreed to cancel the meeting of Debentureholders that was scheduled to be held on Thursday, December 22, 2016 and to forgo its plan to early redeem the Debentures on December 30, 2016.
As per their terms, the Debentures will continue to accrue interest and will mature at par value on their March 31, 2017 maturity date.
Pengrowth remains optimistic that it will be able to reach an agreement with its noteholders that will provide it with the financial flexibility it needs to reinvest capital in its operations, develop the next phase of its Lindbergh property and to thrive as a thermally focused oil and gas producer. The Company expects to have approximately $280 million of cash on its balance sheet at the end of the year, and an undrawn $1 billion bank line. Pengrowth anticipates receiving an additional $250 million in cash proceeds from the recently announced Lindbergh royalty interest transaction, which is expected to close on January 6, 2017.
Pengrowth wishes to thank the holders of its Debentures for the support that they expressed for the resolution which would have amended the indenture under which they were issued to allow Pengrowth to early redeem them as early as December 30, 2016.
Pengrowth Energy Corporation is an intermediate Canadian producer of oil and natural gas, headquartered in Calgary, Alberta. Pengrowth’s assets include the Lindbergh thermal oil, Cardium light oil, Swan Hills light oil and the Groundbirch and Bernadet Montney gas projects. Pengrowth’s shares trade on both the Toronto Stock Exchange under the symbol “PGF” and on the New York Stock Exchange under the symbol “PGH”.