MEG Energy talks $200 million tap of 7% notes due 2024 at 101; pricing Friday

By Paul A. Harris

Portland, Ore., Nov. 1 - MEG Energy Corp. plans to price a $200 million add-on to its 7% senior notes due March 31, 2024 (expected ratings B1/BB) in a Friday drive-by, according to an informed source.

Price talk is 101.

Books close at 11:30 a.m. ET on Friday, and the deal is set to price thereafter.

Barclays is the bookrunner.

The notes become callable on Sept. 30, 2018 at 103.5.

The Calgary, Alta.-based pure play oil sands company plans to use the proceeds for general corporate purposes including its 2014 capital program.

The original $800 million issue priced at par on Sept. 26, 2013.

The Rule 144A for life add-on notes are to be fungible with the Cusip number of the existing notes. The Regulation S notes will temporarily have a new Cusip and ISIN numbers.

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