CALGARY, AB – MEG Energy Corp. (“MEG” or the “Company”) (TSX: MEG) today announced that it has successfully closed its previously announced offering (the “offering”) of US$600 million in aggregate principal amount of 5.875% senior unsecured notes due February 2029 (the “notes”).
MEG intends to use the net proceeds of the offering, together with cash on hand, (i) to redeem in full US$600 million in aggregate principal amount of its 7.00% senior unsecured notes due March 2024 (the “2024 Notes”), and (ii) to pay fees and expenses related to the offering. The redemption of the 2024 Notes is expected to be completed on February 18, 2021.
The notes offered by MEG were not and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The notes were offered only to persons reasonably believed to be qualified institutional buyers in the United States under Rule 144A and outside the United States in compliance with Regulation S under the U.S. Securities Act. In Canada, the notes were offered and sold on a private placement basis in certain provinces of Canada. This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.
MEG is an energy company focused on sustainable in situ thermal oil production in the southern Athabasca region of Alberta, Canada. MEG is actively developing innovative enhanced oil recovery projects that utilize steam-assisted gravity drainage extraction methods to improve the responsible economic recovery of oil as well as lower carbon emissions. MEG transports and sells its thermal oil production to refiners throughout North America and internationally. MEG’s common shares are listed on the Toronto Stock Exchange under the symbol “MEG”.