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Saturn Oil & Gas Inc. Announces Pricing of Upsized Offering of US$650 Million of Senior Secured Second Lien Notes Due 2029
Calgary, Alberta--(Newsfile Corp. - June 5, 2024) - Saturn Oil & Gas Inc. (TSX: SOIL) (FSE: S...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces Pricing of Upsized Offering of US$650 Million of Senior Secured Second Lien Notes Due 2029Calgary, Alberta--(Newsfile Corp. - June 5, 2024) - Saturn Oil & Gas Inc. (TSX: SOIL) (FSE: SMKA) (OTCQX: OILSF) (\"Saturn\" or the \"Company\") today announced that it has priced its previously announced private placement (the \"Offering\"), to eligible purchasers under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the \"Securities Act\"), of US $650 million in aggregate principal amount of 9.625% senior secured second lien notes due 2029 (the \"Notes\") at par. The Offering is expected to close on June 14, 2024, subject to the satisfaction of customary closing conditions. The Notes will be secured by second priority perfected liens on substantially all of the Company's assets, subject to certain exceptions. Initially, the Notes will not be guaranteed, but in the future the Notes may be guaranteed, on a senior secured second lien basis, by any future restricted subsidiaries of the Company, subject to certain exceptions.The Notes will mature on June 15, 2029 and bear interest at the annual rate of 9.625%. Interest on the Notes will accrue from June 14, 2024 and will be payable semi-annually in arrears on June 15 and December 15, beginning on December 15, 2024. The Company expects to use the net proceeds from the Offering to, (a) together with cash on hand and proceeds of its recent $100 million bought deal equity offering of subscription receipts, fund a portion of the cash purchase price of the Company's pending acquisition of certain oil and gas properties, interests, and related assets located in Southern Saskatchewan from Veren Partnership (formerly called Crescent Point Resources Partnership) (the \"Acquisition\"), (b) repay in full the Company's senior secured term loan, and (c) general corporate purposes, which may include the restructuring of certain hedges. In addition, Saturn has also secured a commitment to arrange a new reserve based loan facility (\"RBL\"), with available capacity of $150 million that will be undrawn at the closing of the Acquisition.As a result of the Offering, total drawn debt at closing of the Acquisition will be US$650 million.In the event that the Offering is completed prior to the Acquisition, gross proceeds will be deposited in an escrow account...