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Gibson Energy Inc. Announces Pricing of Senior Notes
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UN...
About this update from Gibson Energy Inc.
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n DISSEMINATION IN THE UNITED STATES/\n\n\nCALGARY, June 25, 2013 /CNW/ - Gibson Energy Inc. (\"Gibson\") (TSX: GEI)\n announced today that it has agreed to issue and sell US$500 million\n principal amount of 6.75% Senior Unsecured Notes due July 15, 2021 (the\n \"US tranche\") and CDN$250 million principal amount of 7.00% Senior\n Unsecured Notes due July 15, 2020 (the \"Cdn tranche\") (collectively,\n the \"Notes\"). The US tranche will be issued at a price of 98.476%,\n resulting in a yield to maturity of 7.00% per annum, and will be\n payable semi-annually in arrears beginning January 15, 2014. The Cdn\n tranche will be issued at a price of 98.633%, resulting in a yield to\n maturity of 7.25% per annum, and will be payable semi-annually in\n arrears beginning January 15, 2014. The offering is expected to close\n on June 28, 2013, subject to customary closing conditions.\n\n\nGibson intends to use the anticipated net proceeds from the offering to\n repay all of the loans outstanding under its existing senior secured\n first lien credit facility, with the remaining proceeds to be used for\n general corporate purposes.\n\n\nConcurrently with the closing of the offering, Gibson expects to enter\n into a new CDN$500 million senior secured revolving credit facility\n (the \"New Revolving Credit Facility\"), which will replace Gibson's\n existing US$375 million senior secured revolving credit facility. The\n New Revolving Credit Facility is expected to be undrawn at the\n completion of the offering (except for the continuation of outstanding\n letters of credit).\n\n\nThe offer and sale of the Notes have not been and will not be registered\n under the United States Securities Act of 1933, as amended (the\n \"Securities Act\"), or applicable state laws, and the Notes may not be\n offered or sold in the United States absent registration or an\n applicable exemption from the registration requirements of the\n Securities Act and applicable state securities laws. The Notes have not\n been and will not be qualified for sale to the public under applicable\n Canadian securities laws and, accordingly, any offer and sale of the\n Notes in Canada will be made on a basis exempt from the prospectus and\n dealer registration requirements of such securities laws. The Notes\n wi...