Chicago, June 20 – Gibson Energy Inc. announced it will issue C$1.1 billion of notes to support the company’s acquisition of 100% of the membership interests of South Texas Gateway Terminal LLC in a press release.
The company is planning to issue a C$900 million three-tranche medium-term note offering (investment grade) and a separate C$200 million hybrid note offering (high yield).
The medium-term notes (BBB-/DBRS: BBBL) consist of C$350 million of 5.8% senior notes due 2026, C$350 million of 5.75% senior notes due 2033 and C$200 million of 6.2% senior notes due 2053.
The company will also issue C$200 million of 8.7% fixed-to-fixed subordinated notes due 2083 (BB/DBRS: BB)with a first call in five years at par.
There will be a special mandatory redemption at 101 if the acquisition has not closed before 5 p.m. ET on Dec. 14.
The completion of the offerings are not contingent upon each other or the completion of the acquisition.
RBC Capital Markets and BMO Capital Markets are leading the syndicate.
Gibson is an oil infrastructure company based in Calgary, Alta. The South Texas Gateway Terminal is a liquid terminal and export facility with direct pipeline connections to low-cost, long reserve-life resource supply, and very large crude carrier capabilities.
| Issuer: | Gibson Energy Inc.
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| Amount: | C$200 million
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| Issue: | Fixed-to-fixed subordinated notes
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| Maturity: | 2083
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| Bookrunners: | RBC Capital Markets and BMO Capital Markets
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| Coupon: | 8.7%
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| Call features: | At par after five years; special mandatory redemption at 101 if acquisition does not close before Dec. 14
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| Trade date: | June 20
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| Settlement date: | June 22
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| Ratings: | S&P: BB
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| DBRS: BB (stable)
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