CALGARY, ALBERTA–(Marketwired – Jan. 12, 2017) – MEG Energy Corp. (“MEG” or the “Company”) (TSX:MEG) announced today that, due to strong demand, the Company has increased the size of its previously announced public offering to 58,100,000 subscription receipts (the “Subscription Receipts”), at a price of $7.75 per Subscription Receipt (the “Offering Price”), for aggregate gross proceeds to the Company of approximately $450 million (the “Offering”). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Subscription Receipt Offering, to purchase up to an additional 15% of the Subscription Receipt Offering to cover over-allotments, if any.
Each subscription receipt will entitle the holder thereof to receive automatically, upon the effectiveness of the credit facility and term loan refinancings and the closing of the previously announced Second Lien Refinancing, without any further action on the part of the holder thereof and without payment of additional consideration, one common share of the Company.
The net proceeds from the offering will be used to partially fund the Company’s 2017 $590 million capital budget and for general corporate purposes.
The bought deal offering will be completed in all of the provinces and territories of Canada by way of a prospectus supplement and the Company’s accompanying base shelf prospectus dated December 1, 2016 and only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A of the U.S. Securities Act of 1933, as amended, (the “U.S. Securities Act”).
The Subscription Receipt Offering is subject to the receipt of all necessary regulatory and stock exchange approvals. The closing date of the Subscription Receipt Offering is expected to be on or about January 24, 2017. The subscription receipts are expected to be automatically exchanged for common shares upon the effectiveness of the credit facility and term loan refinancing and the closing of the Second Lien Refinancing, which is expected to occur by mid-February 2017, and in any event no later than March 15, 2017.
This press release is not an offer of subscription receipts (including the common shares issuable upon conversion thereof) for sale in the United States, and the subscription receipts (including the common shares issuable upon conversion thereof) may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering to be made in the United States will be made by means of a prospectus that may be obtained from MEG and will contain detailed information about MEG and management, as well as financial statements.
About MEG Energy
MEG Energy Corp. is focused on sustainable in situ oil sands development and production in the southern Athabasca oil sands region of Alberta, Canada. MEG is actively developing enhanced oil recovery projects that utilize SAGD extraction methods. MEG’s common shares are listed on the Toronto Stock Exchange under the symbol “MEG.”
This press release is not an offer of securities for sale in the United States, and the securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering to be made in the United States will be made by means of a prospectus that may be obtained from MEG and will contain detailed information about MEG and management, as well as financial statements.