Cenovus announces closing of US$1.25 billion offering of senior notes
September 13 2021 - 5:01PM
Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has completed a public
offering in the United States (the “Offering”) of US$1,250,000,000
in senior notes, consisting of US$500,000,000 of 2.650% senior
unsecured notes due 2032 and US$750,000,000 of 3.750% senior
unsecured notes due 2052 (collectively, the “Notes”). The Notes
were issued under Cenovus’s short form base shelf prospectus dated
September 19, 2019 and a prospectus supplement dated September 9,
2021 filed with securities regulatory authorities in Canada and the
United States.
Deleveraging remains a top priority for Cenovus. The net
proceeds of the Offering will be used to partially finance the
repurchase of certain of the company’s outstanding senior notes
pursuant to previously announced tender offers. In the event there
are any net proceeds of the Offering not used to finance such
repurchase of notes, the company intends to use such net proceeds
to reduce indebtedness and for general corporate purposes. The
company expects it will meet its interim net debt target of $10
billion within 2021, assuming current commodity prices and foreign
exchange rates hold. Longer term, the company is focused on a net
debt target of $8 billion or lower.
J.P. Morgan Securities LLC, BofA Securities, Inc. and MUFG
Securities Americas Inc. acted as active joint book-running
managers. The Offering was supported by additional advisors
including: BMO Capital Markets Corp., Scotia Capital (USA) Inc.,
Mizuho Securities USA LLC, CIBC World Markets Corp., Goldman Sachs
& Co. LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC,
ATB Capital Markets Inc., SMBC Nikko Securities America, Inc.,
Desjardins Securities Inc., and Wells Fargo Securities, LLC.
Advisory Non-GAAP MeasureThis
news release references net debt, which is a non-GAAP measure. Net
debt does not have a standardized meaning as prescribed by IFRS.
Readers should not consider net debt in isolation or as a
substitute for analysis of the company's results as reported under
IFRS. Net debt may be defined differently by different companies
and therefore is not comparable to similar measures presented by
other issuers. Net debt is defined as short-term borrowings, and
the current and long-term portions of long-term debt, net of cash
and cash equivalents and short-term investments. For more
information on this and other non-GAAP measures presented by
Cenovus and additional subtotals, refer to “Non-GAAP Measures and
Additional Subtotals” on page 1 of Cenovus’s Management’s
Discussion and Analysis (MD&A) for the period ended June 30,
2021 (available on SEDAR at sedar.com, on EDGAR at sec.gov and
Cenovus’s website at cenovus.com).
Forward-looking Information This 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.
Forward-looking information in this document is identified by
the words “expect”, “focused”, “may” and “will” and includes
suggestions of future outcomes, including statements about: the
anticipated use of proceeds of the Offering; and Cenovus’s net debt
targets.
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. The assumptions on which our
forward-looking information is based include other risks and
uncertainties described from time to time in the filings Cenovus
makes with securities regulatory authorities.
The risks and uncertainties that could cause our actual results
to differ materially, include, but are not limited to: the risk
that, notwithstanding our current intentions regarding the use of
the net proceeds of the Offering, there may be circumstances where
a reallocation of the net proceeds may be necessary, depending on
future operations, unforeseen events or whether future growth
opportunities arise; inability to achieve our net debt targets; and
risks relating to the current and potential adverse impacts of the
novel coronavirus pandemic including a decline in prices for crude
oil and other petroleum products.Additional information about
risks, assumptions, uncertainties and other factors that could
influence Cenovus’s actual results is provided in Cenovus’s
MD&A for the year ended December 31, 2020 and its MD&A for
the three and six months ended June 30, 2021 as well as 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.
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Instagram.
Cenovus contacts:
Investors |
Media |
Investor Relations general line |
Media Relations general line |
403-766-7711 |
403-766-7751 |
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