CALGARY, Alberta – NuVista Energy Ltd. (“NuVista” or the “Company”) (TSX:NVA) is pleased to announce today that it has entered into an underwriting agreement to sell, on a private placement basis, $230 million aggregate principal amount of 7.875% senior unsecured notes due July 23, 2026 (the “Notes”), which was increased from the previously announced offering of $200 million. The Notes will be issued at $989.89 expressed as a price per $1,000.00 principal amount under a new trust indenture, and will be direct senior unsecured obligations of NuVista ranking equal with all other present and future senior unsecured indebtedness of the Company. The Notes were offered in each of the provinces of Canada and in the United States on a private placement basis without the filing of a prospectus or registration statement (the “Offering”). Closing of the Offering is expected to occur on or about July 23, 2021, subject to satisfaction of customary closing conditions. Certain directors and officers of NuVista have elected to purchase $3.0 million of the Notes.
Subject to the completion of the Offering, the net proceeds of the Offering, together with borrowings under the Company’s credit facility, will be used to redeem all of the Company’s existing $220 million senior unsecured notes due 2023 (the “2023 Notes”) at a redemption price of 101.625%, plus accrued and unpaid interest.
CIBC Capital Markets and RBC Capital Markets are acting as joint bookrunners for the Offering.
This release is not an offer of securities of the Company for sale in the United States. The Notes of have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and the 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.