Seven Generations Energy Ltd. today announced that it has issued notices of conditional redemption (the “Conditional Redemption”) to holders for all of its outstanding 6.750% Senior Notes due 2023 (the “6.750% Notes”) at a redemption price of 100.000% plus accrued and unpaid interest, all of its outstanding 6.875% Senior Notes due 2023 (the “6.875% Notes”) at a redemption price of 101.719% plus accrued and unpaid interest and all of its outstanding 5.375% Senior Notes due 2025 (the “5.375% Notes” and collectively with the 6.750% Notes and 6.875% Notes, the “Notes”) at a redemption price of 104.031% plus accrued and unpaid interest. The Conditional Redemption of the 6.875% Notes and 5.375% Notes is expected to occur on or about April 6, 2021 and the Conditional Redemption of the 6.750% Notes is expected to occur on or about May 1, 2021.
As of March 4, 2021, approximately US$378 million aggregate principal amount of the 6.750% Notes was outstanding, approximately US$114 million aggregate principal amount of the 6.875% Notes was outstanding and approximately US$700 million aggregate principal amount of the 5.375% Notes was outstanding.
Completion of the Conditional Redemption is conditional on the completion of the previously announced business combination transaction (the “Business Combination”) with ARC Resources Ltd. (“ARC”) and, with respect to the 6.875% Notes and the 5.375% Notes, the consummation of a refinancing by ARC in an amount sufficient to fund the redemption of the Notes upon closing of the Business Combination. The Business Combination is subject to shareholder approval for both ARC and Seven Generations, regulatory approvals, and other customary closing conditions, and is expected to close in the second quarter of 2021.
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Seven Generations is a low supply-cost energy producer dedicated to stakeholder service, responsible development and generating strong returns from its liquids-rich Kakwa River Project in northwest Alberta. 7G’s corporate office is in Calgary, its operations headquarters is in Grande Prairie and its shares trade on the TSX under the symbol VII. Further information is available on the company’s website: www.7genergy.com.