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MEG Energy Announces US$800 Million Offering of Senior Notes to Refinance and Extend Maturity Profile of its Debt Portfolio

CALGARY , Jan. 16, 2020 /CNW/ - MEG Energy Corp. ("MEG" or the "Company") (MEG.TO) announced today that, subject to market and other conditions, it plans to commence a private offering (the "offering") of US$800 million in aggregate principal amount of senior unsecured notes due 2027 (the "notes"). MEG intends to use the net proceeds of the offering, if completed, and cash on hand to (i) redeem in full its US$800 million aggregate principal amount of 6.375% senior unsecured notes due January 2023 (the "2023 Notes") and (ii) pay fees and expenses related to the offering.

MEG Energy Announces US$800 Million Offering of Senior Notes to Refinance and Extend Maturity Profile of its Debt Portfolio (CNW Group/MEG Energy Corp.)

MEG also announced today that it has issued (i) a conditional notice to redeem in full MEG's US$800 million in aggregate principal amount of 2023 Notes at a redemption price of 101.063%, plus accrued and unpaid interest to, but not including, the redemption date; and (ii) a notice to redeem US$100 million aggregate principal amount of its 6.50% senior secured second lien notes due 2025 (the "Second Lien Notes") at a redemption price of 104.875%, plus accrued and unpaid interest to, but not including, the redemption date. Each redemption is expected to be completed on or about February 18, 2020 , and the redemption of the 2023 notes is conditioned upon the completion of the offering. Inclusive of the redemption of the Second Lien Notes, MEG will have redeemed US$254 million of the original US$750 million principal balance of the Second Lien Notes.

The notes to be 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 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.

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 2023 Notes and the Second Lien 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. Other factors which could materially affect such forward-looking information are described in the risk factors detailed in the offering documentation prepared and delivered by MEG in connection with the offering.

SOURCE MEG Energy Corp.


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