MEG Energy announces intention to seek commitments to expand and extend credit facility
March 15 2012 - 12:10PM
PR Newswire (Canada)
CALGARY, March 15, 2012 /CNW/ - MEG Energy Corp. ("MEG") today
announced that it is seeking commitments to expand its senior
secured revolving credit facility from US$500 million to US$1
billion. In addition, MEG intends to extend the maturity of its
revolving credit facility by one year to 2017, as well as reduce
the associated fees and interest rates. MEG believes that current
market conditions offer an attractive opportunity to expand its
revolving credit facility, providing greater financial flexibility
in a cost-effective manner. The transaction is expected to be
completed through an amendment of its existing credit agreement.
MEG has appointed Barclays Capital and BMO Capital Markets as Joint
Lead Arrangers and Joint Bookrunners for the amendment. This press
release does not constitute an offer to sell, or a solicitation of
an offer to buy, any security and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such an offer,
solicitation, or sale would be unlawful. MEG Energy Corp. is
focused on sustainable in situ oil sands development and production
in the southern Athabasca oil sands region of Alberta, Canada. MEG
is actively developing enhanced oil recovery projects that utilize
SAGD extraction methods. MEG's common shares are listed on the
Toronto Stock Exchange under the symbol "MEG." Forward Looking
Information This news release may contain forward-looking
information including but not limited to the prospect of expanding,
extending, or otherwise amending MEG's current credit facilities
and the relative attractiveness of current market conditions. Such
forward-looking information is based on certain assumptions and
analysis made by MEG in light of its experience and perception of
current conditions and expected future developments as well as
other factors it believes are appropriate in the circumstances.
However, whether actual results, performance or achievements will
conform to MEG's expectations and predictions is subject to a
number of known and unknown risks and uncertainties which could
cause actual results to differ materially from MEG's expectations.
MEG Energy Corp. CONTACT: Investors Helen KellyDirector, Investor
Relations(403) 767-6206helen.kelly@megenergy.com MediaBrad
BellowsDirector, External Communications(403)
212-8705brad.bellows@megenergy.com
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