MEG Energy launches $450 million new, amended credit facilities at Libor plus 400 bps

By Sara Rosenberg

New York, Dec. 8 - MEG Energy Corp. launched its new $450 million credit facility (B2/BB+) and extended term loans on Tuesday with price talk of Libor plus 400 basis points, according to a market source.

The new credit facility is comprised of a $300 million term loan due April 2016 and a $150 million revolving credit facility due January 2013.

The new term loan is being offered with a 2% Libor floor and an original issue discount of 981/2, and the revolver is being offered at a discount of 98 with no Libor floor, the source said.

MEG is also looking to extend the maturities on about $750 million of existing term loan debt to April 2016. Currently, most of the company's term loan debt matures in 2013 and a small piece matures in 2014.

The extended term loans also have a 2% Libor floor and are being offered with 75 bps of fees, including a 60 bps extension fee and a 15 bps amendment fee, the source added.

Pricing on the non-extended term loan debt is Libor plus 200 bps.

Barclays and Credit Suisse are the joint bookrunners on the deal.

Proceeds will be used for future expenditures and continued development.

MEG Energy is a Calgary, Alta.-based oil sands development company.

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