- Athabasca Oil Corp. (TSX: ATH) has closed its private placement of C$200 million aggregate principal amount of 6.75 per cent senior unsecured notes due Aug. 9, 2029.
- Net proceeds from the offering along with cash on hand were used to redeem its US$157 million aggregate principal amount of 9.75 per cent senior secured second lien notes due Nov. 1, 2026.
- Athabasca stated it proactively refinanced its term debt on attractive terms, supported by strong business fundamentals and constructive credit markets.
- Shares of Athabasca Oil Corp. were down 0.39 per cent, trading at C$5.16 at 12:45 pm ET Friday.
Athabasca Oil Corp. (TSX: ATH) announced Friday that it has closed its previously announced private placement of C$200 million aggregate principal amount of 6.75 per cent senior unsecured notes due Aug. 9, 2029.
Together with cash on hand the net proceeds from the offering were used to redeem its US$157 million aggregate principal amount of 9.75 per cent senior secured second lien notes due Nov. 1, 2026.
According to Friday’s news release, Athabasca “proactively refinanced its term debt on attractive terms, supported by strong business fundamentals and constructive credit markets. The offering supports a lower level of outstanding debt and provides strategic flexibility and business resiliency throughout commodity price cycles, and aligns the company’s long term debt maturity to its asset development horizon.”
Athabasca clams it is in a net cash position of approximately C$110 million with liquidity of about C$400 million (including approximately C$270 million of cash). The company estimates about a C$6 million reduction in annual debt servicing costs as a result of the optimized capital structure.
The notes were offered for sale in Canada on a private placement basis pursuant to certain prospectus exemptions.
Athabasca Oil is a Calgary-based energy company focused on developing thermal and light oil assets in Alberta’s Western Canadian Sedimentary Basin.
Shares of Athabasca Oil Corp. (TSX:ATH) were down 0.39 per cent, trading at C$5.16 at 12:45 pm ET Friday. The stock is up 24.22 per cent this year.
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(Top photo of Athabasca Oil’s Duvernay Energy operations in Alberta: Athabasca Oil Corp.)
