Cenovus completes $3B bought deal financing

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By CPE News

Calgary (pcJ News Briefs) – Cenovus Energy Inc. (TSX/NYSE: CVE) has closed its previously announced bought deal financing of 187.5 million common shares at a price of $16.00 per share for gross proceeds of $3.0 billion.

The offering was made through a syndicate of underwriters led by RBC Capital Markets and J.P. Morgan.

Blake, Cassels & Graydon LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as Canadian and US legal counsel to Cenovus. Norton Rose Fulbright Canada LLP and Shearman & Sterling LLP acted as legal counsels to the underwriters.

Cenovus intends to use the net proceeds to finance a portion of the cash consideration payable for the purchase of assets in Western Canada from ConocoPhillips. In the event that the acquisition is not completed, Cenovus may use the net proceeds to, among other things, reduce its outstanding indebtedness, finance future growth opportunities including acquisitions and investments, finance its capital expenditures, repurchase outstanding common shares or for other general corporate purposes.

photo credit: Cenovus