CALGARY, Alberta--(BUSINESS WIRE)--Seven Generations Energy Ltd. (TSX: VII)
Seven Generations Energy Ltd. has issued a notice of partial redemption to holders of its 6.875% unsecured notes due 2023 (the “6.875% Notes”) to provide notice of its election to redeem US$180 million of the US$294 million aggregate principal amount currently outstanding on December 31, 2020 (the “Redemption Date”) at a redemption price of 101.719% of the aggregate principal amount of redeemed notes, or $1,017.19 per $1,000.00, together with accrued and unpaid interest on the redeemed notes up to, but not including, the Redemption Date.
Seven Generations plans to fund the partial redemption by drawing down its secured credit facilities, currently scheduled to expire in 2024, and expects the partial redemption to reduce corporate interest costs and increase financial flexibility. Following the redemption, the aggregate principal amount of 6.875% Notes outstanding will be US$114 million.
Seven Generations is a low supply-cost energy producer dedicated to stakeholder service, responsible development and generating strong returns from its liquids-rich Kakwa River Project in northwest Alberta. 7G’s corporate office is in Calgary, its operations headquarters is in Grande Prairie and its shares trade on the TSX under the symbol VII. Further information is available on the company’s website: www.7Genergy.com.
This news release contains certain forward-looking information and statements that involve various risks, uncertainties and other factors. The use of any of the words “anticipate”, “intend”, “continue”, “estimate”, “expect”, “may”, “will”, “should”, “believe”, “plans”, and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: the timing of the partial redemption; the amount of 6.785% Notes outstanding following the partial redemption; plans to draw the company’s credit facilities; the expected reduction of corporate interest rates and increased financial flexibility to result from the transaction.
Readers are cautioned against unduly relying on forward-looking statements which, by their nature, involve numerous assumptions, risks and uncertainties that may cause such statements not to occur, or results to differ materially from those expressed or implied. Risks and uncertainties that may affect these business outcomes include: risks related to the successful consummation of the proposed transaction described above; the risk of a downgrade in 7G's credit ratings and the potential impact on 7G's access to capital markets and other sources of liquidity; fluctuations in currency and interest rates; changes in or interpretation of laws or regulations; and other risks and uncertainties impacting 7G's business as are described in 7G's Annual Information Form for the year ended December 31, 2019, dated February 26, 2020, which is available on SEDAR at www.sedar.com.
The forward-looking statements contained in this news release speak only as of the date hereof, and the company does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.
Seven Generations Energy Ltd. is referred to herein as Seven Generations, Seven Generations Energy, 7G and the company.