Crew Energy will use asset sale for redemption of some notes due 2024

Chicago, Aug. 18 – Crew Energy Inc. will use the proceeds from the sale of non-core assets to partially redeem the company’s 6˝% senior notes due 2024, according to a press release.

The company will use the proceeds from the C$130 million sale to redeem C$128 million principal amount of the notes.

A notice of partial redemption has been issued for the notes at a redemption price of C$1,010.40 per C$1,000 note, plus interest to the Sept. 19 redemption date.

Crew Energy sold land north of Peace River with proved reserves and future development capital.

The sale allows the company to focus on production growth in the Greater Septimus and Groundbirch areas.

The company will continue to assess options to refinance the remaining balance of the 2024 notes over the coming quarters in advance of the March 2024 maturity date.

TD Securities Inc. acted as financial adviser to Crew in respect of the disposition and TD Securities Inc. and National Bank Financial acted as co-financial advisers to Crew in respect of the partial redemption of 2024 notes.

Crew Energy is a Calgary, Alta.-based oil and natural gas producer.

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