Cenovus announces pricing and results for any-and-all tender offer

By William Gullotti

Buffalo, N.Y., Sept. 15 – Cenovus Energy Inc. announced pricing terms for its any-and-all tender offer for its outstanding 3.95% notes due 2022 and its 3% notes due 2022 and then later in the evening the results of the offer, according to two press releases Wednesday.

For the $500 million outstanding 3.95% notes due 2022 (Cusip: 448055AJ2), a total consideration of $1,021.07 per $1,000 principal amount of notes was priced based on the 2.25% U.S. Treasury due April 15, 2022 and a fixed spread of 25 basis points. The consideration reflects a reference yield of 0.064% and a repurchase yield of 0.314%.

Noteholders tendered $252,644,000 of the 3.95% notes, plus an additional $1,273,000 via guaranteed delivery procedures.

For the $500 million outstanding 3% notes due 2022 (Cusip: 15135UAG4), a total consideration of $1,024.78 per $1,000 principal amount of notes was priced based on the 1.5% U.S. Treasury due Aug. 15, 2022 and a fixed spread of 20 bps. The consideration reflects a reference yield of 0.083% and a repurchase yield of 0.283%.

The company received tenders for $294,017,000 of the 3% notes, plus an additional $29,464,000 tendered via guaranteed delivery procedures.

As previously reported, the any-and-all offer expired at 5 p.m. ET on Sept. 15. Tenders could be withdrawn at any time prior to that deadline.

Subject to the satisfaction of some certain conditions, Cenovus expects to accept all of the tendered notes for purchase.

The company will pay accrued interest to but excluding the applicable settlement date, which is expected to be Sept. 16.

Financing for the offers is coming from a recently completed notes offering, which closed on Monday, and cash on hand.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424), BofA Securities (980 387-3907) and MUFG Securities Americas Inc. (877 744-4532 or 212 405-7481) are dealer managers for the tender offer.

D.F. King & Co., Inc. (212 269-5550 for banks and brokers only or 888 605-1958 for all others; cve@dfking.com; www.dfking.com/cve) is the tender and information agent.

The oil and natural gas company is based in Calgary, Alta.

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