CALGARY, ALBERTA–(Marketwired – Feb. 21, 2017) – Crew Energy Inc. (TSX:CR) of Calgary, Alberta (“Crew” or the “Company“) today announced that it intends to offer for sale (the “Offering“) senior unsecured notes due 2024 (the “2024 Notes“). Crew intends to offer the Notes in each of the provinces and territories of Canada and in the United States on a private placement basis through a syndicate of underwriters, without the filing of a prospectus or registration statement.
Subject to completion of the Offering, the net proceeds will be used to redeem all of the Company’s existing 8.375% senior unsecured notes due 2020 (the “2020 Notes“), of which an aggregate principal amount of $150 million is currently outstanding, and the excess proceeds will be used for a non-permanent repayment of current indebtedness under Crew’s existing credit facility and for general corporate purposes.
In connection with the proposed redemption of the 2020 Notes, the Company has issued today a notice of conditional redemption to redeem the 2020 Notes at CDN $1,041.88 per $1,000.00 of principal amount redeemed, plus accrued and unpaid interest to, but not including, the redemption date which is March 23, 2017. The redemption of the 2020 Notes is conditional upon completion of the Offering and the Company’s deposit with the paying agent of sufficient funds to pay the aggregate redemption price.
National Bank Financial Markets and TD Securities are acting as joint book-runners and co-lead managers for the Offering.
This release is not an offer of securities of the Company for sale in the United States. The 2024 Notes of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and the 2024 Notes may not be offered or sold in the United States except pursuant to an applicable exemption from such registration. No public offering of securities is being made in the United States.