Transaction|June 25, 2013
Gibson Energy Inc. completes senior note offering
Torys acted as counsel to the Royal Bank of Canada as the lead lender and the initial purchasers with a team that included Kevin Fougere and Elizabeth Burton (banking) and Mike Amm, Janan Paskaran and Leah Dickie (corporate/securities).
On June 25, 2013, Gibson Energy Inc. (Gibson) agreed to issue and sell, on an exempt private placement basis, US$500 million principal amount of 6.75% senior unsecured notes due July 15, 2021 (US tranche) and C$250 million principal amount of 7.00% senior unsecured notes due July 15, 2020 (CDN tranche).
The offering closed on June 28, 2013, after meeting customary closing conditions.
The US tranche issued at a price of 98.476%, resulting in a yield to maturity of 7.00% per annum, and payable semi-annually in arrears beginning January 15, 2014. The CDN tranche issued at a price of 98.633%, resulting in a yield to maturity of 7.25% per annum, and payable semi-annually in arrears beginning January 15, 2014.
In conjunction with the offering, Gibson entered into a new C$500 million senior secured revolving credit facility to refinance its existing US$375 million senior secured revolving credit facility.
Net proceeds from the new senior unsecured notes are expected to be used to repay all outstanding indebtedness under the existing term loan facility, with the remaining net proceeds to be used for general corporate purposes.
Gibson Energy Inc. is a large independent midstream energy company in Canada and a major participant in the crude oil transportation business in the United States.
Further information can be found on Stockhouse and Stockwatch's websites.
The offering closed on June 28, 2013, after meeting customary closing conditions.
The US tranche issued at a price of 98.476%, resulting in a yield to maturity of 7.00% per annum, and payable semi-annually in arrears beginning January 15, 2014. The CDN tranche issued at a price of 98.633%, resulting in a yield to maturity of 7.25% per annum, and payable semi-annually in arrears beginning January 15, 2014.
In conjunction with the offering, Gibson entered into a new C$500 million senior secured revolving credit facility to refinance its existing US$375 million senior secured revolving credit facility.
Net proceeds from the new senior unsecured notes are expected to be used to repay all outstanding indebtedness under the existing term loan facility, with the remaining net proceeds to be used for general corporate purposes.
Gibson Energy Inc. is a large independent midstream energy company in Canada and a major participant in the crude oil transportation business in the United States.
Further information can be found on Stockhouse and Stockwatch's websites.