All financial figures are in Canadian dollars unless otherwise noted
CALGARY, Alberta – Gibson Energy Inc. announced today its intention to redeem the entire $99.3 million of principal amount currently outstanding of its 5.25% convertible unsecured subordinated debentures due July 15, 2021 (the “Debentures”).
“Through the proactive redemption of the Debentures, we are continuing to optimize our peer-leading capital structure,” said Sean Brown, Senior Vice President and Chief Financial Officer of Gibson. “Given our ample liquidity, we are in a position to retire the Debentures in a non-dilutive manner. Following the redemption, we will continue to be fully-funded for our growth capital program into 2021 and in full compliance of all of our Financial Governing Principles, with our pro forma leverage and payout ratios remaining below our target ranges.”
Gibson delivered a notice of redemption to the trustee for the Debentures today. The redemption terms are in accordance with the provisions of the trust indenture governing the Debentures and are as follows:
|Redemption Date||December 23, 2020|
|Redemption Price||$1,000 per $1,000 principal amount|
|Accrued and Unpaid Interest||$23.16 per $1,000 principal amount|
|Redemption Price plus Accrued and Unpaid Interest||$1,023.16 per $1,000 principal amount|
Pursuant to the terms of the indenture governing the Debentures, holders of the Debentures have the right until the last business day prior to the Redemption Date to convert their Debentures into Gibson common shares at a conversion price of $21.65, being a rate of 46.1894 common shares per $1,000 principal amount of Debentures.
Gibson Energy Inc. (“Gibson” or the “Company”), (TSX: GEI) is a Canadian-based oil infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of crude oil and refined products. Headquartered in Calgary, Alberta, the Company’s operations are focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and also include the Moose Jaw Facility and an infrastructure position in the U.S.
Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.