CALGARY, AB – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company“) (TSX: TVE) announces that it has successfully closed the previously announced private placement offering (the “Offering“) of $200 million aggregate principal amount of 7.25% senior unsecured sustainability-linked notes due May 10, 2027 (the “Notes“). The Company 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“).
Brian Schmidt, President and Chief Executive Officer of Tamarack commented, “we are thrilled be the first oil and gas producer in North America to issue a Sustainability-Linked Bond. Tamarack’s continued engagement in Sustainability-Linked debt further demonstrates our commitment to transparency and responsible business operations.”
The Notes were offered through a syndicate of underwriters led by National Bank Financial Markets and RBC Capital Markets which acted as Joint-Bookrunners and Sustainability-Linked Bond Structuring Advisors, CIBC Capital Markets which acted as Co-Lead Manager, and ATB Capital Markets, Desjardins Capital Markets, BMO Capital Markets, Peters & Co., Raymond James Ltd. and Stifel FirstEnergy, which acted as co-managers. 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 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.
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 pursuant to an applicable exemption from such registration. No public offering of securities is being made in the United States.