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.
ABOUT PERPETUAL
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.
FORWARD-LOOKING
INFORMATION
Certain information in this news release including management's
assessment of future plans and operations may constitute
forward-looking information or statements (together
"forward-looking information") under applicable securities laws.
The forward-looking information includes, without limitation,
statements with respect to: the benefits of the redemption of the
2025 Senior Notes and the amended terms of the 2025 Senior Notes by
providing the Company with continuation of committed capital and
transactional flexibility; and Perpetual's business plan.
Forward-looking information is based on current expectations,
estimates and projections that involve a number of known and
unknown risks, which could cause actual results to vary and in some
instances to differ materially from those anticipated by Perpetual
and described in the forward-looking information contained in this
news release. In particular and without limitation of the
foregoing, material factors or assumptions on which the
forward-looking information in this news release is based include:
forecast commodity prices and other pricing assumptions; forecast
production volumes based on business and market conditions; foreign
exchange and interest rates; near-term pricing and continued
volatility of the market including inflationary pressures;
accounting estimates and judgments; future use and development of
technology and associated expected future results; the ability to
obtain regulatory approvals; the successful and timely
implementation of capital projects; ability to generate sufficient
cash flow to meet current and future obligations including those
under the Settlement Agreement; the ability of Perpetual to obtain
and retain qualified staff and equipment in a timely and
cost-efficient manner, as applicable; the retention of key
properties; forecast inflation, supply chain access and other
assumptions inherent in Perpetual's current guidance and estimates;
climate change; severe weather events (including wildfires and
drought); the continuance of existing tax, royalty, and regulatory
regimes; the accuracy of the estimates of reserves volumes; ability
to access and implement technology necessary to efficiently and
effectively operate assets; risks of wars or other hostilities or
geopolitical events (including the ongoing war in Ukraine and conflicts in the Middle East), civil insurrection and
pandemics; risks relating to Indigenous land claims and duty to
consult; data breaches and cyber attacks; risks relating to the use
of artificial intelligence; changes in legislation, including but
not limited to tax laws, royalties and environmental regulations
(including greenhouse gas emission reduction requirements and other
decarbonization or social policies) and general economic and
business conditions and markets, among others.
Undue reliance should not be placed on forward-looking
information, which is not a guarantee of performance and is subject
to a number of risks or uncertainties, including without limitation
those described herein and under "Risk Factors" in Perpetual's
Annual Information Form and MD&A for the year ended
December 31, 2023 and in other
reports on file with Canadian securities regulatory authorities
which may be accessed through the SEDAR+ website (www.sedarplus.ca)
and at Perpetual's website (www.perpetualenergyinc.com). Readers
are cautioned that the foregoing list of risk factors is not
exhaustive. Forward-looking information is based on the estimates
and opinions of Perpetual's management at the time the information
is released, and Perpetual disclaims any intent or obligation to
update publicly any such forward-looking information, whether as a
result of new information, future events or otherwise, other than
as expressly required by applicable securities law.
SOURCE Perpetual Energy Inc.