EnCana's Subsidiary Completes $3.5B Private Debt Offering



EnCana's wholly-owned subsidiary Cenovus Energy Inc. has completed, in three tranches, a US $3.5 billion private offering of debt securities which are exempt from the registration requirements of the Securities Act of 1933 under Rule 144A and Regulation S.
The three tranches are:

  • US $800 million 4.50% senior notes due September 15, 2014
  • US $1.3 billion 5.70% senior notes due October 15, 2019
  • US $1.4 billion 6.75% senior notes due November 15, 2039

These debt securities have been assigned provisional ratings of BBB+ by Standard & Poor's Corporation and A (low) by DBRS Limited, and Baa2 by Moody’s Investors Services, Inc.

As previously announced, Cenovus has arranged a commitment for revolving and bridge credit facilities in the amounts of C$2 billion and US $3 billion, respectively, in connection with the proposed Plan of Arrangement as outlined in EnCana’s news release of September 10, 2009.

The proceeds of the private offering will eliminate the need for the US $3 billion bridge credit facility. The net proceeds of the private offering were placed into an escrow account pending the completion of the Arrangement.


 


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