OPTI Canada plans $1 billion of notes, C$500 million revolver, C$200 million bridge loan

By Angela McDaniels

Seattle, Nov. 16 - OPTI Canada Inc. said it adopted a proposed financing plan that includes the issuance of up to $1 billion of high-yield senior secured notes, a new C$500 million revolving credit facility and a new C$200 million bridge credit facility.

The proceeds from the senior secured notes and revolver will be used to retire outstanding amounts under OPTI's existing C$900 million project credit facility, to fund OPTI's share of costs associated with phase 1 of the Long Lake Project and to fund upfront development costs for phase 2.

The bridge credit facility will ensure continued access to OPTI's existing project credit facility until the issuance of the senior secured notes and will terminate at that time, according to a company news release.

Upon the closing of these transactions, OPTI's debt facilities are expected to consist of the outstanding senior secured notes, the revolving credit facility and its existing $450 million term loan B facility.

While the company plans to complete these transactions by the end of the year, it said the transactions remain subject to a number of conditions including agreement on final terms and conditions and definitive documentation of the debt facilities.

Calgary, Alta.-based OPTI Canada is developing an oil sands project, the Long Lake Project, as a 50/50 joint venture with Nexen Inc.

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