CALGARY, AB – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company“) (TSX: TVE) announces that it has entered into an underwriting agreement to sell, on a private placement basis, $200 million aggregate principal amount of 7.25% senior unsecured sustainability-linked notes due May 10, 2027 (the “Notes“). The Notes will be issued at par under a trust indenture and will be general unsecured obligations of Tamarack ranking pari passu with all of the Company’s existing and future senior unsecured indebtedness (the “Offering“). Closing of the Offering is expected to occur on or about February , 2022, subject to satisfaction of customary closing conditions.
Subject to completion of the Offering, Tamarack intends to use the net proceeds of the Offering to fund a portion of the purchase price for Tamarack’s previously announced acquisition of Crestwynd Exploration Ltd. and repay amounts outstanding under the Company’s sustainability-linked credit facility (the “SLL Facility“). The Notes will eliminate the requirement for the previously announced separate and additional $100 million credit facility from the existing syndicate.
The Notes are being issued in accordance with Tamarack’s Sustainability-Linked Bond Framework (the “SLB Framework“), which sets out certain sustainability performance targets (“SPTs“) that are aligned with Tamarack’s overall corporate sustainability strategy and previous SLL Facility, including: i) Scope 1 and 2 emissions intensity reductions of 39% by 2025 over the 2020 baseline, and; ii) Indigenous workforce participation of 6% or greater by 2025. Details of the SLB Framework are available on the Company’s website. Failure to meet the SPTs will result in a step-up in the interest rate payable of 75 basis points for the emissions reduction SPT and 25 basis points for the Indigenous workforce participation SPT from and including May 10, 2026.
National Bank Financial Markets and RBC Capital Markets are acting as Joint-Bookrunners and Sustainability-Linked Bond Structuring Advisors for the Offering. S&P Global Markets has provided a second party opinion of the SLB Framework, confirming alignment with the International Capital Market Association’s Sustainability-Linked Bond Principles.
The Notes will not be qualified for distribution to the public or registered under the securities laws of any province or territory of Canada or in the United States and were only offered in the provinces of Canada and in the United States pursuant to applicable private placement exemptions to qualified institutional investors
This release is not an offer of securities of the Company for sale in the United States. The Notes have not 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 as pursuant to an applicable exemption from such registration. No public offering of securities is being made in the United States.