Gibson Energy Announces Closing of $500 Million Medium Term Note Offering and Redemption of $300 Million Senior Unsecured Notes Due 2022
All financial figures are in Canadian dollars unless otherwise noted
Gibson Energy Inc. ("Gibson" or the "Company"), (TSX:GEI.TO), announced today that it has closed the previously announced offering of $500 million senior unsecured medium term notes, Series 1 (the "Notes"). The Notes will have a fixed coupon rate of 3.60% per annum, payable semi-annually, and will mature on September 17, 2029.
Gibson intends to use the net proceeds from the sale of the Notes for the redemption of its outstanding $300 million 5.375% senior unsecured notes due July 15, 2022 (the "2022 Notes"), to reduce outstanding indebtedness under its revolving credit facility and for general corporate purposes.
The Notes have been assigned ratings of "BBB-" by S&P Global Ratings and "BBB (low)" with a "Stable" trend by DBRS Limited.
The Notes were offered through a syndicate of investment dealers co-led by CIBC Capital Markets and RBC Capital Markets under Gibson's short form base shelf prospectus dated June 26, 2019, a prospectus supplement dated September 3, 2019 and a pricing supplement dated September 12, 2019 relating to the offering of the Notes.
Redemption of $300 Million Senior Notes Due 2022
Gibson will deliver a notice of redemption to registered holders of the 2022 Notes today. The redemption price will be calculated in accordance with the provisions of the trust indenture governing the 2022 Notes, with interest accruing to, but excluding, the redemption date, resulting in terms as follows:
Redemption Date October 17, 2019 Redemption Price $1,013.44 per $1,000 principal amount Accrued and Unpaid Interest $13.74 per $1,000 principal amount Redemption Price plus Accrued and Unpaid Interest $1,027.18 per $1,000 principal amount
This news release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or the 2022 Notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The Notes or the 2022 Notes have not been approved or disapproved by any regulatory authority. The Notes or the 2022 Notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any securities laws of any state of the United States and may not be offered, sold or delivered in the United States or to, or for the account or benefit of, United States persons.
Gibson is a Canadian-based oil infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of crude oil and refined products. Headquartered in Calgary, Alberta, the Company's operations are focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and also include the Moose Jaw Facility and an infrastructure position in the U.S.
Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements") including, but not limited to, statements concerning the anticipated use of the proceeds from the issuance of the Notes and the delivery of notices of redemption to registered holders of the 2022 Notes. All statements other than statements of historical fact are forward-looking statements. The use of any of the words ''anticipate'', ''plan'', ''contemplate'', ''continue'', ''estimate'', ''expect'', ''intend'', ''propose'', ''might'', ''may'', ''will'', ''shall'', ''project'', ''should'', ''could'', ''would'', ''believe'', ''predict'', ''forecast'', ''pursue'', ''potential'' and ''capable'' and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements and forward-looking information attributed to third party industry sources. The Company does not undertake any obligations to publicly update or revise any forward looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in "Forward-Looking Statements" and "Risk Factors" included in the Company's Annual Information Form dated March 4, 2019 as filed on SEDAR and available on the Gibson website at www.gibsonenergy.com.
For further information, please contact:
Vice President, Strategy, Planning & Investor Relations
Phone: (403) 776-3146