Saturn Oil & Gas closes private offering of US$650 million of senior secured second lien notes
On June 5, 2024, Saturn Oil & Gas Inc. ("Saturn") announced pricing for its previously announced private placement in the United States, to eligible purchasers under Rule 144A and Regulation S of the Securities Act, of US$650 million in aggregate principal amount of 9.625% senior secured second lien notes.
The notes, secured by second priority perfected liens on substantially all of Saturn's assets (subject to certain exceptions), 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
Closing of the offering was announced on June 14, 2024.
The company expects to use the net proceeds from the offering,
- together with cash on hand and proceeds of a recent US$100 million bought deal equity offering of subscription receipts, to fund a portion of the cash purchase price of its pending acquisition of certain oil and gas properties, interests, and related assets located in southern Saskatchewan from Veren Partnership (formerly Crescent Point Resources Partnership);
- to repay in full its senior secured term loan; and
- for general corporate purposes, which may include the restructuring of certain hedges.
Further information can be found on Newsfile’s website.
Saturn Oil & Gas is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities.