CALGARY, March 10 /PRNewswire-FirstCall/ - (TSX: PMT) - Perpetual Energy Inc. ("Perpetual" or the "Corporation") is pleased to announce the pricing of its previously announced offering of $150 million of 7-year Senior Unsecured Notes (the "Notes"). The Notes were priced at par, will bear interest at a rate of 8.75% per annum and will mature on March 15, 2018. The Notes are being offered in each Province of Canada and in the United States on a private placement basis through a syndicate of underwriters.
The net proceeds from the Notes offering will be used to repay existing indebtedness under Perpetual's existing credit facility. The offering will also provide Perpetual additional flexibility with respect to the maturity of its 6.50% convertible debentures due June 2012.
Closing is expected to occur on or about March 15, 2011.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an available exemption from such registration requirements. This news release does not constitute an offer to sell, or the solicitation of an offer to purchase, the Notes in the United States.
Certain information regarding Perpetual in this news release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws. The forward-looking information includes, without limitation, completion of the offering, use of proceeds of the offering, and expected credit facility levels and term of outstanding debt. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release, which assumptions are based on management analysis of historical trends, experience, current conditions and expected future developments pertaining to Perpetual and the industry in which it operates as well as certain assumptions regarding the matters outlined above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Perpetual and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties, including without limitation those described under "Risk Factors" in Paramount Energy Trust's MD&A for the year ended December 31, 2009 and those included in reports on file with Canadian securities regulatory authorities which may be accessed through the SEDAR website (www.sedar.com) and at Perpetual's website (www.perpetualenergyinc.com). Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of Perpetual's management at the time the information is released and Perpetual disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities law.
SOURCE Perpetual Energy Inc.