MEG Energy to price $750 million eight-year second-lien notes in Thursday drive-by

By Paul A. Harris

Portland, Ore., Jan. 12 – MEG Energy Corp. plans to price a $750 million offering of eight-year senior secured second-lien notes (Fitch: BB) on Thursday following a mid-morning conference call with investors, according to a market source.

Lead left bookrunner Barclays will bill and deliver for the Rule 144A and Regulation S for life notes offering. BMO Securities and RBC Capital Markets LLC are the joint bookrunners.

CIBC World Markets, Credit Suisse Securities (USA) LLC, HSBC, J.P. Morgan Securities LLC, MUFG and TD Securities are the co-managers.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 35% equity clawback and a 101% poison put.

The Calgary, Alta.-based oil sands development and production company plans to use the proceeds to help refinance its senior notes due 2021.

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