CALGARY, AB – Strathcona Resources Ltd. (“Strathcona“) announced today that it has priced a private offering (the “Offering“) under Rule 144A and Regulation S of the U.S. Securities Exchange Act of 1933, as amended (the “U.S. Securities Act“), to eligible purchasers, of U.S.$500 million in aggregate principal amount of 6.875% senior unsecured notes due 2026 (the “Notes“). The Offering is expected to close on or about July 20, 2021 subject to customary closing conditions.
Strathcona intends to use the net proceeds from this Offering to repay a portion of the outstanding borrowings under its revolving credit facility and operating facility without cancelling the revolving commitments thereunder and repay a portion of the outstanding borrowings under its term loan facility.
The offer and sale of the Notes have not been registered under the U.S. Securities Act or any United States state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A and non U.S. persons outside the United States in compliance with Regulation S under the U.S. Securities Act. In Canada, the offer and sale of the Notes have not been qualified for distribution to the public under a prospectus and the Notes will only be offered and sold pursuant to an applicable private placement exemption in certain provinces of Canada. This news release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Notes or any other security and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful.