New Issue: Cenovus Energy prices upsized $1 billion five-year bullet at par to yield 5 3/8%

By Paul A. Harris

Portland, Ore., July 28 – Cenovus Energy Inc. priced an upsized $1 billion amount of five-year senior bullet notes (Ba2/BBB-/BB+) at par to yield 5 3/8% in a Tuesday drive-by, according to market sources.

The issue size increased from $750 million.

The yield printed in the middle of the 5¼% to 5½% yield talk. Initial guidance was 5½% to 5¾%.

The deal was heard to be playing to $2.5 billion of orders at 1 p.m. ET on Tuesday, a trader said.

BofA Securities Inc., BMO, Scotia Capital, RBC Capital Markets LLC and TD Securities were the joint bookrunners.

The Calgary, Alta.-based integrated oil and gas company plans to use the proceeds to repay short-term debt under its revolving credit facility.

Issuer:	Cenovus Energy Inc.
Amount:	$1 billion, increased from $750 million
Maturity:	July 15, 2025
Securities:	Senior notes
Bookrunners:	BofA Securities Inc., BMO, Scotia Capital, RBC Capital Markets LLC and TD Securities
Co-managers:	CIBC World Markets, ATB, Barclays, J.P. Morgan Securities Inc., Credit Suisse Securities (USA) LLC, Desjardins, MUFG, Mizuho Securities, SMBC Nikko, National Bank and Wells Fargo Securities LLC
Coupon:	5 3/8%
Price:	Par
Yield:	5 3/8%
Spread:	511 bps
Call protection:	Par call three months prior to maturity, otherwise non-callable
Trade date:	July 28
Settlement date:	July 30
Ratings:	Moody's: Ba2
	S&P: BBB-
	Fitch: BB+
Distribution:	SEC registered
Price talk:	5¼% to 5½%
Marketing:	Drive-by

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