By Paul A. Harris
Portland, Ore., Jan. 19 – MEG Energy Corp. priced a $600 million issue of eight-year senior notes (expected ratings (B3/B-/B+) at par to yield 5 7/8% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 6% area. Initial guidance was in the low-to-mid 6% area.
Lead left bookrunner RBC will bill and deliver. Joint bookrunners were Barclays and BMO.
The Calgary, Alta.-based energy company, which is focused on thermal oil production, plans to use the proceeds plus cash on hand to fund a call for all of its existing 7% notes due 2024.
| Issuer: | MEG Energy Corp.
|
| Amount: | $600 million
|
| Maturity: | Feb. 1, 2029
|
| Securities: | Senior notes
|
| Lead left bookrunner: | RBC (bill and deliver)
|
| Joint bookrunners: | Barclays and BMO
|
| Co-managers: | CIBC and ATB
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Call protection: | Three years
|
| Trade date: | Jan. 19
|
| Settlement date: | Feb. 2
|
| Expected ratings: | Moody's: B3
|
| S&P: B-
|
| Fitch: B+
|
| Distribution: | Rule 144 and Regulation S
|
| Price talk: | 6% area
|
| Marketing: | Drive-by
|
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