Perpetual Energy announces series of transactions, including loan and notes

Chicago, March 22 – Perpetual Energy Inc. announced several news items including the repayment of an existing C$2.7 million second-lien term loan and the early redemption of its secured third-lien senior notes, with the opportunity for noteholders to elect to continue to hold the senior secured subject to certain amendments.

The company repaid and canceled its term loan with Alberta Investment Management Corp., due Dec. 31, 2024 with all accrued and unpaid interest.

The company also provided a notice for early redemption of its C$33.2 million of 8¾% senior secured third-lien notes due Jan. 23, 2025.

The redemption date for the Regulation S notes would be April 25.

The redemption price is par including accrued interest and paid-in-kind interest.

Instead of receiving the redemption price, noteholders may elect to continue to hold their notes by agreeing to certain amendments.

The company will pay C$22.29 per C$1,000 principal amount for the accrued interest to noteholders who choose to not keep their notes.

Holders who choose to agree to the amendments and keep their notes need to decide two business days before the redemption date.

The amendments 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 as well as to provide for the second-lien security which is required in connection with the resolution of the Sequoia litigation (detailed below).

Insider entities have already agreed to extend C$26.5 million of the notes.

The company also announced a settlement agreement with the trustee in the bankruptcy case for Sequoia Resources Corp., ending several years of litigation.

Perpetual Energy will owe C$30 million, spread out over several years.

Interest prior to March 27, 2026 will accrue and be forgiven.

Further, the company amended its existing first-lien credit facility to provide for the matters listed above.

The borrowing base is unchanged at C$30 million.

Perpetual Energy is a Calgary, Alta., energy company.

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