The Firm represented the initial purchasers, led by Barclays and BMO, in connection with a Rule 144A/Regulation S offering by a wholly owned subsidiary of MEG Energy Corp. (“MEG”) of US$750 million of 6.5% Senior Secured Second Lien Notes due 2025 (the “Second Lien Notes”). The net proceeds from the offering will be used to finance the redemption of all of its outstanding 6.5% Senior Notes due 2021.
The Firm also acted as U.S. counsel to the underwriters, led by BMO Nesbitt Burns, Barclays and RBC Dominion, in connection with a registered offering in Canada by MEG of 66,815,000 subscription receipts at C$7.75 per subscription receipt for approximately C$495 million of net proceeds. Each subscription receipt entitles the holder thereof to receive, without payment of additional consideration or further action on the part of such holder, one common share of MEG upon satisfaction of certain conditions. MEG’s common shares are listed on the Toronto Stock Exchange under the symbol “MEG.” The net proceeds from the offering of subscription receipts will be used to partially fund MEG’s 2017 capital program and for general corporate purposes.
In addition, the Firm also represented the lenders in connection with the refinancing of MEG’s revolving credit facility and term loan credit facility to, among other things, extend the maturity dates of such facilities and permit the incurrence of the Second Lien Notes.
MEG is an oil sands company focused on sustainable in situ oil sands development and production in the southern Athabasca oil sands region of Alberta, Canada. MEG is actively developing enhanced oil recovery projects that utilize steam‐assisted gravity drainage extraction methods.
The Simpson Thacher team included Ken Wallach, Hui Lin, Jackie Yuan, Evan Zuckerman and Nakita Cuttino (Capital Markets & Securities); Justin Lungstrum, Richard Sitton, Adam Weiner and Katie Smith (Credit); Jon Cantor and Taylor Weinstein (Tax); Mike Isby (Environmental); Andrew Blau (Executive Compensation and Employee Benefits); Dennis Loiacono (Real Estate); and Andrew Pagliughi (FINRA and Blue Sky).