Calgary (pcJ News Briefs) – Gibson Energy Inc. (TSX: GEI) has closed previously announced offering of $350 million aggregate principal amount of 5.25% senior unsecured notes due July 15, 2024 on an exempt private placement basis.
Net proceeds, along with a portion of the net proceeds from the previously announced sale of the Industrial Propane Business, were utilized to purchase CDN $211,052,000 of its 7.000% senior notes due 2020 and US $338,800,000 of its 6.75% senior notes due 2021 pursuant to the tender offer announced on March 8, 2017.
“Today’s closing of the Private Placement, in combination with the early settlement of the tender offer, strengthens the Company’s balance sheet by reducing our long-term indebtedness, decreasing annual interest costs and extending our debt maturity profile,” said Sean Brown, Gibsons’ Chief Financial Officer.
Gibsons is a Canadian-based midstream energy company with operations in most of the key hydrocarbon-rich basins in North America. With headquarters in Calgary, Alberta, the company’s North American operations include the storage, blending, processing, transportation, marketing and distribution of crude oil, natural gas liquids and refined products. Gibsons also provides oilfield waste and water management services.
photo credit: Gibsons