By Paul A. Harris
Portland, Ore., Jan. 16 – MEG Energy Corp. priced an upsized $1.2 billion issue of seven-year senior notes (B3/BB-/B+) at par to yield 7 1/8% in a Thursday drive-by, according to a market source.
The issue size increased from $800 million.
The yield printed at the tight end of yield talk in the 7¼% area.
Bookrunners were Barclays, BMO and RBC.
The Calgary, Alta.-based oil company plans to use the proceeds, together with cash on hand, to pay off its 6 3/8% notes due 2023.
MEG Energy is focused on in situ sustainable thermal oil development and production in Canada.
| Issuer: | MEG Energy Corp.
|
| Amount: | $1.2 billion, increased from $800 million
|
| Maturity: | Feb. 1, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), BMO and RBC
|
| Co-managers: | CIBC and ATB
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 540 bps
|
| Call protection: | Three years
|
| Trade date: | Jan. 16
|
| Settlement date: | Jan. 31
|
| Ratings: | Moody's: B3
|
| S&P: BB-
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% area
|
| Marketing: | Quick to market
|
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