New Issue: MEG Energy sells upsized $800 million 7% 10.5-year notes at par

By Paul A. Harris

Portland, Ore., Sept. 26 - MEG Energy Corp. priced an upsized $800 million issue of senior notes due March 31, 2024 (B1/BB) at par to yield 7% on Thursday, according to a syndicate source.

The issue was upsized from $750 million.

The yield printed at the wide end of yield talk set in the 6 7/8% area.

Barclays, BMO Securities and Credit Suisse Securities (USA) LLC were the joint bookrunners for the quick-to-market deal.

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

Issuer:	MEG Energy Corp.
Amount:	$800 million, increased from $750 million
Maturity:	March 31, 2024
Securities:	Senior notes
Bookrunners:	Barclays, BMO Securities, Credit Suisse Securities (USA) LLC
Co-managers:	CIBC World Markets, RBC Capital Markets, HSBC, J.P. Morgan Securities LLC, TD Securities
Coupon:	7%
Price:	Par
Yield:	7%
First call:	Sept. 30, 2018 at 103.5
Trade date:	Sept. 26
Settlement date:	Oct. 13
Ratings:	Moody's: B1
	Standard & Poor's: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	6 7/8% area
Marketing:	Quick to market

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