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Athabasca Oil tenders for C$550 million 7½% second-lien notes due 2017
By Marisa Wong
Morgantown, W.Va., Feb. 9 – Athabasca Oil Corp. said it has begun a cash tender offer for any and all of its outstanding C$550 million 7½% senior secured second-lien notes due 2017.
The company said it is also soliciting consents from noteholders to authorize the elimination of most of the restrictive covenants and some events of default contained in the indenture governing the notes. Holders may not tender their notes without delivering their consents or vice versa.
The early tender deadline is 5 p.m. ET on Feb. 23, and the offer will expire at 11:59 p.m. ET on March 9.
Notes tendered may be withdrawn at any time on or before 5 p.m. ET on Feb. 23. The company said it may extend the early tender deadline without extending the withdrawal deadline.
Holders tendering notes by the early deadline will be eligible to receive the total consideration of C$1,004.25 per C$1,000 principal amount. The total consideration includes an early tender payment of C$30.00 per C$1,000 principal amount.
Holders tendering after the early deadline will only be eligible to receive the tender offer consideration, C$974.25 per C$1,000 principal amount, or the total consideration less the early tender payment.
The company will also pay accrued interest to the applicable payment date.
The company may choose to accept early tenders for purchase prior to the expiration of the offer. The early payment date is expected to be Feb. 24.
The tender offer is conditioned on the company raising at least $450 million from a debt issuance.
The tender agent is TSX Trust Co. (866 600-5869 or 416 342-1091). The dealer manager and solicitation agent is RBC Capital Markets, LLC (877 381-2099, 416 842-6311, 212 618-7822).
Athabasca is a Calgary, Alta.-based energy company focused on the development of thermal and light oil assets.
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