CALGARY, March 18 /PRNewswire/ - MEG Energy Corp. ("MEG" or the "Corporation") (TSX: MEG) today announced that it has refinanced its US$41.5 million senior secured term loan B, US$957.9 million term loan D and US$200 million revolving credit facilities. The Corporation has incurred US$1.0 billion under a new senior secured term loan facility and will have access to a US$500 million senior secured revolving credit facility. The new term loan facility matures on March 18, 2018 and bears a floating interest rate based on either US prime or the London Interbank Offer Rate ("LIBOR"), at the Corporation's option, plus a credit spread of 200 or 300 basis points, respectively. The US$500 million revolving facility matures on March 18, 2016 and is currently undrawn.
In conjunction with the refinancing, MEG has entered into a Second Amended and Restated Credit Agreement (the "Amended and Restated Credit Agreement") with Barclays Capital, the investment banking division of Barclays Bank PLC, Credit Suisse Securities (USA) LLC and BMO Capital Markets, the investment division of Bank of Montreal, as joint lead arrangers, Barclays Capital, Credit Suisse Securities (USA) LLC, BMO Capital Markets and Morgan Stanley Senior Funding, Inc., as joint bookrunners, Bank of Montreal, as revolving administrative agent, and Barclays Bank PLC, as administrative agent and collateral agent.
MEG is focused on sustainable in situ oil sands development and production in the southern Athabasca region of Alberta, Canada. MEG is actively developing enhanced oil recovery projects that utilize SAGD extraction methods.
SOURCE MEG Energy Corp.