MEG Energy closes $518M subscription receipt financing

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By Ted Liu

MEG Energy Corp. (TSX: MEG) has completed its previously announced bought deal offering of 66,815,000 subscription receipts, including 8,715,000 subscription receipts issued n exercise of the over-allotment option, at a price of $7.75 per subscription receipt for gross proceeds of approximately $517.8 million.

Net proceeds will be used to partially fund MEG’s 2017 $590 million capital program and for general corporate purposes.

The offering was conducted by syndicate of underwriters co-led by BMO Nesbitt Burns Inc., Barclays Capital Canada Inc., RBC Dominion Securities Inc. and including CIBC World Markets Inc., Credit Suisse Securities (Canada), Inc., HSBC Securities (Canada) Inc., TD Securities Inc., J.P. Morgan Securities Canada Inc, AltaCorp Capital Inc., GMP Securities L.P., Peters & Co. Limited, and Scotia Capital Inc.

Bennett Jones LLP and Blake, Cassels & Graydon LLP acted as legal counsels to MEG and the underwriters respectively.

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.

photo credit: MEG Energy