OPTI Canada Announces Financing Plan

OPTI Canada Inc. on Thursday said that it has adopted a proposed financing plan consisting of the issuance of up to US$1.0 billion of high-yield senior secured notes, the placement of a CDN$500 million revolving credit facility and the placement of a CDN$200 million bridge credit facility.

The proceeds from the senior secured notes and revolving credit facility would be used to retire outstanding amounts under OPTI's existing CDN$900 million Project Credit Facility, fund OPTI's share of costs associated with Phase 1 of the Long Lake Project as well as fund upfront development costs for Phase 2. The bridge credit facility was put in place to ensure continued access to OPTI's existing Project Credit Facility until the issuance of the senior secured notes and will terminate at such time.

Upon the closing of these transactions, OPTI's debt facilities are expected to consist of the outstanding senior secured notes, the revolving credit facility and its existing US$450 million Term Loan B Facility.

Completion of these transactions is anticipated by year end but remains subject to a number of conditions, including agreement on final terms and conditions and definitive documentation of these debt facilities.

OPTI Canada Inc. is a Calgary, Alberta-based company focused on developing the fourth and next major integrated oil sands project in Canada, the Long Lake Project, in a 50/50 joint venture with Nexen Inc. The first phase of the Project consists of 72,000 barrels per day of SAGD (steam assisted gravity drainage) oil production integrated with an OPTI-operated upgrading facility, using OPTI's proprietary OrCrude(TM) process and commercially available hydrocracking and gasification. Through gasification, this configuration substantially reduces the exposure to and the need to purchase natural gas. The Project is expected to produce 58,500 bbl/d of products, primarily 39 degrees API premium sweet crude with low sulphur content, making it a highly desirable refinery feedstock.