Obsidian Energy Announces Pricing and Issue of $127.6 Million Senior Unsecured Notes | OBE Message Board Posts


Obsidian Energy Ltd.

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Msg  21728 of 21742  at  7/25/2022 10:46:14 PM  by

shiftsuper175607


Obsidian Energy Announces Pricing and Issue of $127.6 Million Senior Unsecured Notes

 

Calgary, Alberta--(Newsfile Corp. - July 25, 2022) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("ObsidianEnergy", the "Company", "we", "us" or "our") announces that it has entered into an underwriting agreement to sell, on a private placement basis, $127.6 million aggregate principal amount of 11.95 percent five-year senior unsecured notes due July 27, 2027 (the "Notes"). The Notes will be issued at a price of $980.00 per $1,000.00 principal amount to receive aggregate gross proceeds of approximately $125 million. The Notes will be direct senior unsecured obligations of Obsidian Energy ranking equal with all other present and future senior unsecured indebtedness of the Company. The Notes were offered in each of the provinces of Canada and in the United States on a private placement basis without the filing of a prospectus or registration statement (the "Offering"). Closing of the Offering is expected to occur on or about July 27, 2022, subject to satisfaction of customary closing conditions. Certain directors, officers and employees of Obsidian Energy have elected to purchase approximately $6.4 million of the Notes.

Subject to completion of the Offering, the net proceeds of the Offering, together with all initial draws on new credit facilities to be entered into by the Company, will be used to repay all of our existing senior secured notes, in accordance with the terms thereof, repay the outstanding balances under our existing credit facilities, and repay the PROP limited recourse loan due on December 31, 2022, which was incurred by the Company in connection with our 2021 acquisition of the remaining 45 percent interest in the Peace River Oil Partnership.

The Notes are not qualified for distribution to the public or registered under the securities laws of any province or territory of Canada or in the United States. They are only offered in the provinces of Canada and in the United States pursuant to applicable exemptions from the prospectus and registration requirements thereunder.

ADDITIONAL READER ADVISORIES

CAUTIONARY STATEMENTS PURSUANT TO THE OFFERING

The Notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold except to qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the U.S. Securities Act, or to accredited investors in reliance on the exemption from registration provided by Rule 506 under the U.S. Securities Act, or to persons outside the United States in compliance with Regulation S under the U.S. Securities Act. Any public offering of securities made in the United States would be made by means of a prospectus that would be obtainable from the Company and that would contain detailed information about the Company, its management and financial statements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

FORWARD-LOOKING STATEMENTS



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