Business
Whitecap Resources Inc. Announces Closing of Senior Secured Notes and Provides Operational Update
Whitecap Resources Inc. Announces Closing of Senior Secured Notes and Provides Operational...
About this update from Whitecap Resources Inc.
[{"type":"text","content":"\n\n\n\nWhitecap Resources Inc. Announces Closing of Senior Secured Notes and Provides Operational Update\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, May 31, 2017\n\n\n\nCALGARY, May 31, 2017 /CNW/ - Whitecap Resources Inc. (\"Whitecap\" or the \"Company\") (TSX: WCP) is pleased to announce that it has closed an issuance of Cdn$200 million senior secured notes which have an annual coupon rate of 3.54% and mature in 7 years on May 31, 2024. The notes were issued by way of a private placement, pursuant to a note purchase agreement and rank equally with Whitecap's obligations under its bank facilities. Proceeds from the notes will be used to repay a portion of Whitecap's outstanding bank debt.\n\nWhitecap has now secured $400 million of term debt at very attractive long-term fixed interest rates that mature in five and seven years. These notes, combined with the bank credit facility of $900 million, provide Whitecap with $1.3 billion of total borrowing capacity. Whitecap continues to maintain a strong balance sheet with an estimated 2017 net debt to funds flow ratio of under 1.5 times based on current strip pricing.\n\nThe senior secured notes may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption from such registration. Whitecap has not registered and will not register the senior secured notes under the U.S. Securities Act of 1933, as amended. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the senior secured notes in any state in which such offer, solicitation or sale would be unlawful.\n\nOperational Update\n\nOn April 28, 2017, the non-operated Coleville gas plant in west central Saskatchewan was unexpectedly shut-in due to operational safety issues, negatively impacting our production volumes, primarily at Lucky Hills and Whiteside, by 1,700 boe/d (8.4 MMcf/d and 300 bbls/d of associated natural gas liquids). The shut-in is ongoing with anticipated production volumes to be ful...