Cenovus announces successful Consent Solicitation with respect to Cenovus’s 6.80% Notes due 2037
April 21 2021 - 8:30AM
Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced the
expiration and results of the previously announced consent
solicitation (the “Consent Solicitation”) and receipt of the
consents necessary to effect an amendment to the pledge agreement
(the “2037 Notes Pledge Agreement”) in respect of Cenovus’s
outstanding 6.80% Notes due 2037 (the “2037 Notes”). The 2037 Notes
were issued under an indenture, dated as of September 11, 2007 (as
supplemented and amended, the “Indenture”) between Cenovus (as
successor by amalgamation to Husky Energy Inc. (“Husky”)) and Wells
Fargo Bank, National Association (as successor trustee to The Bank
of Nova Scotia Trust Company of New York) (the “Trustee”). The
Indenture also governs the outstanding 4.40% Notes due 2029 (the
“2029 Notes”), 4.00% Notes due 2024 (the “2024 Notes”) and 3.95%
Notes due 2022 (the “2022 Notes”) of Cenovus (in each case,
originally issued by Husky).
Consent SolicitationSubject to the terms and
conditions described in Cenovus’s Consent Solicitation Statement,
dated April 12, 2021 (the “Solicitation Statement”), Cenovus
solicited consents from the holders of the 2037 Notes as of the
Record Date (as defined in the Solicitation Statement) (“Holders”)
to conform the 2037 Notes Pledge Agreement to the pledge agreements
in respect of the 2029 Notes and the 2024 Notes (the
“Amendment”).
In conjunction with receiving the requisite consents, Cenovus
will promptly execute and deliver an amendment to the 2037 Notes
Pledge Agreement, pursuant to which the Amendment will become
operative. Except for the Amendment, all of the existing terms of
the 2037 Notes, the Indenture and the 2037 Notes Pledge Agreement
will remain unchanged.
Cenovus will pay the consent payment detailed in the table below
to the Holders whose consents were validly delivered (and not
revoked) prior to the expiration of the Consent Solicitation, as
early as April 21, 2021 subject to the terms and conditions
described in the Solicitation Statement. The 2037 Notes are
currently rated Baa3 with a negative outlook and BBB- with a stable
outlook by Moody’s and S&P Global Ratings, respectively.
Cenovus does not expect that the Amendment will affect these
ratings.
Series of Notes |
CUSIP/ ISIN Number |
Outstanding Aggregate Principal Amount |
Consent Payment |
6.80% Notes due 2037 |
CUSIP: 448055AD5ISIN: US448055AD59 |
$386,773,000 |
$1.00 per $1,000 principal amount of the 2037 Notes |
No Consents were solicited from holders of the 2029 Notes, the
2024 Notes or the 2022 Notes, and the Amendment has no effect on
any of these series of notes.
This announcement is for information purposes only and is
neither an offer to sell nor a solicitation of an offer to buy any
2037 Notes or any other securities.
References in this news release to "dollars" or "$" are to
United States dollars.
ADVISORYForward-looking
InformationThis news release contains certain
forward-looking statements and forward-looking information
(collectively referred to as “forward-looking information”) within
the meaning of applicable securities legislation, including the
United States Private Securities Litigation Reform Act of 1995,
about our current expectations, estimates and projections about the
future, based on certain assumptions made by us in light of our
experience and perception of historical trends. Although Cenovus
believes that the expectations represented by such forward-looking
information are reasonable, there can be no assurance that such
expectations will prove to be correct. Readers are cautioned not to
place undue reliance on forward-looking information as actual
results may differ materially from those expressed or implied.
Cenovus undertakes no obligation to update or revise any
forward-looking information except as required by law.
Forward-looking information in this document is identified by
words such as “expect”, or “will”, or similar expressions and
includes suggestions of future outcomes.
Developing forward-looking information involves reliance on a
number of assumptions and consideration of certain risks and
uncertainties, some of which are specific to Cenovus and others
that apply to the industry generally.
Readers are cautioned that other events or circumstances,
although not listed above, could cause Cenovus’s actual results to
differ materially from those estimated or projected and expressed
in, or implied by, the forward-looking statements. For a full
discussion of material risk factors, refer to Risk Management and
Risk Factors in Cenovus’s Management’s Discussion and Analysis of
the financial and operating results for the year ended December 31,
2020 and the risk factors set forth under the heading “Risk
Factors” in Cenovus’s Annual Information Form, and to the risk
factors described in other documents Cenovus files from time to
time with securities regulatory authorities in Canada, available on
SEDAR at sedar.com, and with the U.S. Securities and Exchange
Commission on EDGAR at sec.gov, and on its website at
cenovus.com.
Cenovus Energy Inc.Cenovus Energy Inc. is an
integrated energy company with oil and natural gas production
operations in Canada and the Asia Pacific region, and upgrading,
refining and marketing operations in Canada and the United States.
The company is focused on managing its assets in a safe, innovative
and cost-efficient manner, integrating environmental, social and
governance considerations into its business plans. Cenovus common
shares and warrants are listed on the Toronto and New York stock
exchanges, and the company’s preferred shares are listed on the
Toronto Stock Exchange. For more information, visit
cenovus.com.
Find Cenovus on Facebook, Twitter, LinkedIn, YouTube and
Instagram.
CENOVUS
CONTACTS:Investor RelationsInvestor
Relations general line403-766-7711 |
Media
RelationsMedia Relations general
line403-766-7751 |
Cenovus Energy (TSX:CVE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cenovus Energy (TSX:CVE)
Historical Stock Chart
From Jul 2023 to Jul 2024