- Tamarack (TVE) has closed its $100M private placement offering of sustainability-linked notes
- The senior unsecured notes bear interest at 7.25 per cent and come due on May 10, 2027
- The company intends to use the proceeds to fund a portion of its previously announced acquisition of Deltastream Energy
- If the acquisition fails to materialize, Tamarack may use the proceeds to reduce debt, fund future acquisitions and for general corporate purposes
- Tamarack Valley Energy is an oil and gas exploration and production company active in Alberta
- Tamarack (TVE) is down by 1.86 per cent, trading at $3.955 per share
Tamarack (TVE) has closed its $100M private placement offering of sustainability-linked notes.
The senior unsecured notes bear interest at 7.25 per cent and come due on May 10, 2027. The notes were issued at $940 per $1,000 principal amount through the trust indenture under which Tamarack previously issued $200M of 7.25-per-cent senior unsecured sustainability-linked notes due May 10, 2027.
The debt marks the first sustainability-linked note issuance in the North American oil and gas producer space.
The company intends to use the proceeds to fund a portion of its previously announced acquisition of Deltastream Energy.
Tamarack’s Sustainability-Linked Bond Framework includes:
- Scope 1 and 2 emissions intensity reductions of 39 per cent by 2025 over the 2020 baseline
- Indigenous workforce participation of 6 per cent or greater by 2025
Failure to meet the framework will result in a step-up in interest payable of 75 basis points for emissions reduction and 25 basis points for Indigenous workforce participation from May 10, 2026.
RBC Capital Markets and National Bank Financial Markets acted as book-runners and advisors for the private placement.
The private placement is not conditional on the completion of the acquisition. In the event the acquisition is not completed, Tamarack may use the proceeds to reduce debt, fund future acquisitions and for general corporate purposes.
Tamarack Valley Energy is an active oil and gas exploration and production company in Alberta.
Tamarack (TVE) is down by 1.86 per cent, trading at $3.955 per share as of 1:13 pm EST.