CALGARY, March 14 /PRNewswire-FirstCall/ - MEG Energy
Corp. ("MEG") (TSX: MEG) today announced the pricing and an
increase in size of its previously announced senior unsecured notes
offering (the "Notes Offering"). Due to strong reception
shown by the market for the Notes Offering, MEG is increasing the
total size of the offering from US$500
million to US$750 million. The senior unsecured notes
shall bear interest at 6.5% per annum and are due in 2021.
MEG intends to use the net proceeds of the Notes Offering for
general corporate purposes, which may include capital expenditures
and repayment of existing indebtedness. The closing of the Notes
Offering, which is subject to customary conditions, is expected to
occur on March 18, 2011.
The senior unsecured notes being offered by MEG
will not be registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act"), and may not be offered or sold
in the United States absent
registration or an applicable exemption from registration
requirements. The senior unsecured notes are being offered
only to qualified institutional buyers in the United States under Rule 144A and outside
the United States in compliance
with Regulation S under the U.S. Securities Act. In
Canada, the senior unsecured notes
are being offered on a private placement basis in certain provinces
of Canada.
This press release does not constitute an offer
to sell, or a solicitation of an offer to buy, any security and
shall not constitute an offer, solicitation or sale in any
jurisdiction in which such an offer, solicitation, or sale would be
unlawful.
About MEG
MEG is focused on sustainable in situ oil
sands development and production in the southern Athabasca region of Alberta, Canada. MEG is actively developing
enhanced oil recovery projects that utilize SAGD extraction
methods.
Caution Regarding Forward-Looking
Information
This news release may contain forward-looking
information including but not limited to the offering of senior
unsecured notes by MEG, the closing of the Notes Offering, and the
use of such proceeds. Such forward-looking information is
based on certain assumptions and analysis made by MEG in light of
its experience and perception of current conditions and expected
future developments as well as other factors it believes are
appropriate in the circumstances. However, whether actual
results, performance or achievements will conform to MEG's
expectations and predictions is subject to a number of known and
unknown risks and uncertainties which could cause actual results to
differ materially from MEG's expectations. Other factors which
could materially affect such forward-looking information are
described in the risk factors detailed in the offering
documentation prepared and delivered by MEG in connection with the
Notes Offering.
SOURCE MEG Energy Corp.