- Athabasca Oil (ATH) has announced a private placement offering offering of 350,000 units
- Each unit will consist of $1,000 principal amount of senior secured second lien notes due 2026 and one five-year warrant to purchase 227 common shares
- The offering is anticipated on or about October 22, 2021
- Proceeds will be used to redeem its US$450 million aggregate principal amount senior secured second lien notes due February 24, 2022
- Athabasca also announced it will enter into a C$110 million reserves-based secured credit facility with a syndicate of financial institutions
- Athabasca Oil Corporation is a Canadian energy company focused on the development of thermal and light oil assets
- Athabasca Oil Corporation (ATH) is up 0.53 per cent, trading at C$0.955 per share at 3:15 pm ET
Athabasca Oil (ATH) has announced a private placement offering of 350,000 units.
Each unit will consist of $1,000 principal amount of senior secured second lien notes due 2026 which bear interest at 9.75 per cent per annum, and one five-year warrant to purchase 227 common shares at a price of $0.9441 per warrant share. The offering is anticipated on or about October 22, 2021.
Athabasca intends to use the net proceeds of the offering, along with cash on hand to redeem its US$450 million aggregate principal amount senior secured second lien notes due February 24, 2022. The redemption is expected to be completed on or about November 6, 2021, and is conditional upon the completion of the offering.
Athabasca also announced it will enter into an amended and restated credit agreement with a syndicate of financial institutions. The credit agreement will provide for a C$110 million reserves-based secured credit facility with a maturity date in October 2023. The company maintains its C$40 million unsecured letter of credit facility that is supported by a performance security guarantee from Export Development Canada.
Athabasca Oil Corporation is a Canadian energy company focused on the development of thermal and light oil assets. The company has amassed a significant land base of extensive, high quality resources.
Athabasca Oil Corporation (ATH) is up 0.53 per cent, trading at C$0.955 per share at 3:15 pm ET.