The Offer expired at 5 p.m., New York City time, on July 26, 2017, with US$262.2 million in aggregate principal amount or 97.2% of Notes validly tendered and not validly withdrawn. All tendered Notes were accepted by the Company for purchase and payment was made on July 31, 2017. After giving effect to the purchase of the tendered Notes, an aggregate principal amount of US$7.5 million of the Notes remains outstanding.
The indenture governing the Notes provides that if holders of at least 90% of the Notes accept the Offer and Cona purchases all such Notes, Cona has the right to redeem all of the Notes that remain outstanding at a purchase price equal to 101% of the principal amount of such Notes plus accrued and unpaid interest up to, but not including, the date of such redemption. Accordingly, the Company notified holders of the remaining Notes that on August 31, 2017 it will redeem all such Notes at a purchase price equal to 101% of the principal amount of such Notes plus accrued and unpaid interest up to, but not including, August 31, 2017.
The purchase of the Notes plus accrued and unpaid interest totalled US$274.4 million (CAD$345.2 million). The payment was financed through a draw of $186.8 million on the Company’s existing credit facility, a $160.0 million second lien term loan entered into for the purposes of financing the Offer and cash on hand. The term loan matures on July 28, 2020, and is repayable at par during the first year, 102.5% during the second year and 105% during the third year. The term loan bears interest at the Canadian Dollar Offered Rate (“CDOR”) plus 7.5% (today, approximately 8.7%) during the first year, and CDOR plus 10.0% thereafter. RBC Capital Markets and TD Securities acted as joint lead arrangers and bookrunners for the term loan.
After the redemption of the remaining Notes, all of the Company’s debt will be denominated in Canadian dollars.
Cona Resources Ltd.
Cona is a Canadian crude oil production and development company focused on maximizing oil recovery from its large-scale oil resource base. The Company’s operations, infrastructure and concentrated land position are focused in southwest Saskatchewan. Cona’s common shares trade on the Toronto Stock Exchange under the symbol CONA.