CALGARY, ALBERTA–(Marketwired – Jan. 24, 2017) – MEG Energy Corp. (“MEG”) (TSX:MEG) announced today that it has closed its previously announced public offering on a bought deal basis (the “Offering”) of 66,815,000 subscription receipts (the “Subscription Receipts”), including the 8,715,000 Subscription Receipts issuable on exercise of the over-allotment option granted by MEG to the underwriters in connection with the Offering, at a price of $7.75 per Subscription Receipt for aggregate gross proceeds from the Offering of approximately $517.8 million. The over-allotment option was exercised in full on January 12, 2017.
Each Subscription Receipt will entitle the holder thereof to receive automatically one common share of MEG, upon the effectiveness of the previously announced credit facility and term loan refinancing and the closing of the previously announced second lien note refinancing, prior to or on March 15, 2017, without any further action on the part of the holder thereof and without payment of additional consideration. This conversion is expected to occur by mid-February 2017.
The net proceeds from the Offering will be used to partially fund MEG’s 2017 $590 million capital program and for general corporate purposes.
The Offering was completed in all of the provinces and territories of Canada by way of a prospectus supplement dated January 13, 2017 to MEG’s base shelf prospectus dated December 1, 2016 and 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 Receipts will commence trading on the Toronto Stock Exchange today under the symbol MEG.R.
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.”