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.
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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