OPTI Canada Closes US$750 Million Senior Secured Note Offering

OPTI Canada's debt financing has been successfully placed with institutional investors. The financing includes US$750 million of 7.875% senior secured notes due 2014.

"With the completion of this financing, OPTI has put in place a capital structure to fund Phase 1 to completion, as well as to support our Phase 2 planning activities in advance of potential sanctioning in 2008," said Sid Dykstra, President and Chief Executive Officer of OPTI. "The success of this financing is a reflection of the proximity to start-up of our first phase at Long Lake, our next-generation upgrading process, and our large resource base which will allow us to proceed with our phased development plan to achieve our target of 180,000 barrels per day of Premium Sweet Crude net to OPTI."

Upon closing of this transaction, OPTI realized net proceeds from the senior notes of approximately US$260 million after repayment of OPTI's US$450 million Term Loan B Facility, funding of an interest reserve account and deduction for expenses. Total long-term debt outstanding is US$1.750 billion, consisting of the US$750 million 7.875% senior secured notes and previously issued US$1.0 billion 8.25% senior secured notes. OPTI also has access to a CDN$500 million revolving credit facility, of which CDN$424 million is currently undrawn.

The credit ratings for all of the outstanding series of senior secured notes are B1/BB+. The current credit ratings for the revolver are Ba3/BB+, and OPTI's corporate or family credit ratings are Ba3/BB-.

Credit Suisse acted as book-running lead manager, with RBC Capital Markets and TD Securities acting as joint lead managers. The syndicate also included RBS Greenwich Capital, BNP Paribas, Merrill Lynch, Scotia Capital and Societe Generale.


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