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Obsidian Energy Announces Offering and Pricing of $175 Million, 5-Year Senior Unsecured Notes due in 2030 and Redemption of Existing $80.8 Million Senior Unsecured Notes due in 2027
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Announces Offering and Pricing of $175 Million, 5-Year Senior Unsecured Notes due in 2030 and Redemption of Existing $80.8 Million Senior Unsecured Notes due in 2027NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Calgary, Alberta--(Newsfile Corp. - November 19, 2025) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") announces that it has entered into an underwriting agreement to sell, on a private placement basis (the \"Offering\"), $175.0 million aggregate principal amount of 8.125 percent five-year senior unsecured notes due December 3, 2030 (the \"Notes\"). The Notes will be issued at par under a trust indenture and will be direct senior unsecured obligations of Obsidian Energy ranking equal with all other present and future senior unsecured indebtedness of the Company. Closing of the Offering is expected to occur on or about December 3, 2025, subject to satisfaction of customary closing conditions. Subject to completion of the Offering, the net proceeds of the Offering will be used to redeem our existing $80.8 million, 11.95%, senior unsecured notes due July 27, 2027 (the \"2027 Notes\"), to pay down indebtedness under our syndicated credit facility and to pay related transaction expenses. Post completion of the Offering, the Company's syndicated credit facility of $235 million will be approximately $5 million drawn. Obsidian Energy has also today given notice of redemption of the 2027 Notes, as required under the trust indenture governing the 2027 Notes, which redemption is conditional upon the successful closing of the Offering. \"Given the strength in the credit markets, the Company took the opportunity to refinance our unsecured notes at a considerably lower interest rate than our previous note issue,\" commented Stephen Loukas, Obsidian Energy's President and CEO. \"This refinancing further strengthens our already solid balance sheet during this period of commodity price volatility. Additionally, it provides significant flexibility to grow our production at Peace River and Willesden Green when prices are appropriate to doing so, further our enhanced oil recovery opportunities and continue with our shareholder return initiatives.\"BMO Capital Markets and RBC Capital Markets are acting a...