Suncor offers to buy notes from 10 series for up to C$1.75 billion

By Marisa Wong

Los Angeles, Sept. 26 – Suncor Energy Inc. announced offers to purchase for cash any and all of 10 series of outstanding notes for up to a C$1.75 billion maximum aggregate total consideration, according to a press release.

Suncor and wholly owned subsidiary Suncor Energy Ventures Corp. are offering to purchase notes from the following series, listed in order of acceptance priority level:

• $58.95 million outstanding 8.2% notes due April 1, 2027 (Cusip: 046828AA7) issued by Suncor Energy Ventures, with pricing to be based on the 3.125% U.S. Treasury due Aug. 31, 2027 and a fixed spread of 165 basis points;

• $141,804,000 outstanding 6% notes due April 1, 2042 (Cusip: 13643EAH8, C18885AF7) issued by Suncor with pricing to be calculated using the Oct. 1, 2041 par call date and based on the 3.375% U.S. Treasury due Aug. 15, 2042 and a fixed spread of 255 bps;

• C$700 million outstanding 3% series 5 medium-term notes due Sept. 14, 2026 (Cusip: 86721ZAM1) issued by Suncor Energy Inc. with pricing to be calculated using the June 14, 2026 par call date and based on the 1.5% Government of Canada bond due June 1, 2026 and a fixed spread of 60 bps;

• C$750 million outstanding 3.1% series 6 medium-term notes due May 24, 2029 (Cusip: 86721ZAP4) issued by Suncor, with pricing to be calculated using the Feb. 24, 2029 par call date and based on the 2.25% Government of Canada bond due June 1, 2029 and a fixed spread of 125 bps;

• C$600 million outstanding 5.39% series 4 medium-term notes due March 26, 2037 (Cusip: 86721ZAB5) issued by Suncor, with pricing to be based on the 1.75% Government of Canada bond due Dec. 1, 2053 and a fixed spread of 215 bps;

• C$1.25 billion outstanding 5% series 7 medium-term notes due April 9, 2030 (Cusip: 86721ZAQ2) issued by Suncor, with pricing to be calculated using the Jan. 9, 2030 par call date and based on the 1.25% Government of Canada bond due June 1, 2030 and a fixed spread of 155 bps;

• $300 million outstanding 5.35% notes due July 15, 2033 (Cusip: 716442AH1) issued by Suncor, with pricing to be based on the 2.75% U.S. Treasury due Aug. 15, 2032 and a fixed spread of 210 bps;

• $600 million outstanding 5.95% notes due May 15, 2035 (Cusip: 71644EAG7) issued by Suncor, with pricing to be based on the 2.75% U.S. Treasury due Aug. 15, 2032 and a fixed spread of 220 bps;

• $500 million outstanding 5.95% notes due Dec. 1, 2034 (Cusip: 867229AD8) issued by Suncor, with pricing to be based on the 2.75% U.S. Treasury due Aug. 15, 2032 and a fixed spread of 215 bps; and

• $1.15 billion outstanding 6.5% notes due June 15, 2038 (Cusip: 867229AE6) issued by Suncor, with pricing to be based on the 3.375% U.S. Treasury due Aug. 15, 2042 and a fixed spread of 220 bps.

Pricing will be determined at 2 p.m. ET on Oct. 4.

In addition to the total consideration, holders whose notes are accepted for purchase will receive a cash payment equal to accrued interest to but excluding the settlement date.

The offers are scheduled to expire at 5 p.m. ET on Oct. 4. Holders may withdraw their notes any time at or prior to that deadline.

Tenders under guaranteed delivery procedures are due by 5 p.m. ET on Oct. 6.

Settlement is expected to be on Oct. 7.

No series will be subject to proration in the amount accepted.

The offerors reserve the right to waive any and all conditions to the offers, extend or terminate any or all of the offers, increase or decrease the maximum purchase consideration or otherwise amend the offers in any way.

CIBC World Markets Corp. and CIBC World Markets Inc. (solely for the Canadian dollar notes), collectively CIBC (800 282-0822 or 212 455-6427); J.P. Morgan Securities LLC and J.P. Morgan Securities Canada Inc. (solely for the Canadian dollar notes), collectively JPMorgan (866 834-4666 or 212 834-2064); RBC Capital Markets, LLC and RBC Dominion Securities Inc. (solely for the Canadian dollar notes), collectively RBC (877 381-2099, 212 618-7843 or 416 842-6311); and TD Securities (USA) LLC and TD Securities Inc. (solely for the Canadian dollar notes), collectively TD Securities (866 584-2096, 212 827-2842 or 416 982-2243) are acting as the joint dealer managers for the offers.

Global Bondholder Services Corp. is the tender agent for the U.S. dollar note offers.

Computershare Investor Services Inc. is the tender agent for the Canadian dollar note offers.

Questions relating to the offers or may be directed to Global Bondholder Services (855 654-2014 or 212 430-3774; https://www.gbsc-usa.com/suncor).

Suncor is an energy company based in Calgary, Alta.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.