CALGARY, AB, Jan. 19, 2021 /CNW/ - MEG Energy Corp. ("MEG" or
the "Company") (TSX: MEG) announced the pricing of its previously
announced offering (the "offering") of US$600 million in aggregate principal amount of
senior unsecured notes (the "notes"). The notes will bear interest
at 5.875% per annum and are due in 2029.
MEG intends to use the net proceeds of the offering, together
with cash on hand, (i) to redeem in full US$600 million in aggregate principal amount of
its 7.00% senior unsecured notes due March
2024 (the "2024 Notes"), and (ii) to pay fees and expenses
related to the offering.
The closing of the offering, which is subject to customary
conditions, is expected to occur on February
2, 2021. The notes offered by MEG will not be registered
under the U.S. Securities Act of 1933, as amended (the "U.S.
Securities Act"), and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. The notes are
being offered only to persons reasonably believed to be qualified
institutional buyers in the United
States under Rule 144A and outside the United States in compliance with
Regulation S under the U.S. Securities Act. In Canada, the notes are to be offered and sold
on a private placement basis in certain provinces of Canada. This news 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.
About MEG
MEG is an energy company focused on sustainable in situ thermal
oil production in the southern Athabasca region of Alberta, Canada. MEG is actively developing
innovative enhanced oil recovery projects that utilize
steam-assisted gravity drainage extraction methods to improve the
responsible economic recovery of oil as well as lower carbon
emissions. MEG transports and sells its thermal oil production to
refiners throughout North America
and internationally. MEG's common shares are listed on the Toronto
Stock Exchange under the symbol "MEG".
Forward-Looking Information
Certain statements contained in this news release may constitute
forward-looking statements within the meaning of applicable
Canadian securities laws. These statements relate to future events
or MEG's future performance. All statements other than statements
of historical fact may be forward-looking statements. The use of
any of the words "anticipate", "continue", "estimate", "expect",
"may", "will", "project", "should", "believe", "dependent",
"ability" "plan", "intend", "target", "potential" and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are often, but not always, identified by
such words. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. In particular, and without limiting the
foregoing, this news release contains forward-looking statements
with respect to the proposed offering of notes, the use of proceeds
therefrom, the timing and successful completion of the offering and
the redemption of the 2024 Notes. 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. Further information regarding the
assumptions and risks inherent in the making of forward-looking
statements can be found in MEG's most recently filed Annual
Information Form ("AIF"), along with MEG's other public disclosure
documents. Copies of the AIF and MEG's other public disclosure
documents are available through the Company's website at
www.megenergy.com/investors and through the SEDAR website at
www.sedar.com. The forward-looking information included in
this news release is expressly qualified in its entirety by the
foregoing cautionary statements. Unless otherwise stated, the
forward-looking information included in this news release is made
as of the date of this news release and MEG assumes no obligation
to update or revise any forward-looking information to reflect new
events or circumstances, except as required by law.
For further information, please contact:
Investor Relations
T 587.293.6045
E invest@megenergy.com
Media Relations
T 587.233.8396
E media@megenergy.com
SOURCE MEG Energy Corp.