CALGARY, AB, April 25, 2024 /CNW/ – (TSX: PMT) – Perpetual Energy Inc. (“Perpetual”, or the “Company”) is pleased to announce the completion of its previously announced early redemption of its 8.75% senior secured third-lien notes maturing January 23, 2025 (the “2025 Senior Notes”), with the opportunity for noteholders to elect to continue to hold such notes subject to certain amendments. Of the $33.2 million aggregate principal amount of 2025 Senior Notes outstanding, approximately $7.0 million were redeemed for cash plus accrued interest equal to $22.29 per $1,000 principal amount of 2025 Senior Notes, for a total repayment of approximately $7.2 million which was funded from cash on hand.
The remaining approximately $26.2 million face value of 2025 Senior Notes will continue to be held by certain noteholders on amended terms. These amended terms provide the Company with continuation of committed capital and transactional flexibility including the right to convert all or a portion of the 2025 Senior Notes into common shares of the Company or other securities at its discretion at any time prior to the maturity date, subject to regulatory approval, as well as to permit the second lien security which is required in connection with the previously announced resolution of the Sequoia Litigation, subject to Court approval. Entities controlled or directed by the President and Chief Executive Officer, holding $26.2 million of 2025 Senior Notes, elected to agree to the amended terms and to be a continuing holder of 2025 Senior Notes as amended.
Perpetual is an oil and natural gas exploration, production and marketing company headquartered in Calgary, Alberta. Perpetual owns a diversified asset portfolio, including liquids-rich conventional natural gas assets in the deep basin of West Central Alberta, and undeveloped bitumen leases in Northern Alberta. Additional information on Perpetual can be accessed at SEDAR+ at www.sedarplus.ca or from the Company’s website at www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.