CALGARY,
AB, Jan. 16, 2025 /CNW/ - Bonterra Energy
Corp. (TSX: BNE) ("Bonterra" or the "Company") is
pleased to announce that it has entered into an underwriting
agreement to issue and sell $135 million of five year, 10.50%
Senior Secured Second Lien Notes due 2030 (the "Notes") by
way of private placement (the "Offering"). The Offering is
being underwritten by CIBC Capital Markets and ATB Capital Markets,
as joint active bookrunners, in a syndicate that includes RBC
Capital Markets as joint passive bookrunner.
The Offering of Notes supports the repayment of the Company's
upcoming maturities on its outstanding junior debt, provides a long
term, simplified and more flexible capital structure and is a key
step to enhancing the Company's liquidity moving forward.
Bonterra intends to use the net proceeds from the Offering to
repay in full the Company's senior unsecured debentures and amounts
owing under the second lien term loan, with the remainder, if
any, to repay a portion of the amount then drawn under the
Company's revolving first lien credit facility, to pay related
transaction expenses and/or for general corporate purposes.
This press release does not constitute a notice of redemption for
the debentures.
The Notes will be issued at a price of $981.16 per $1,000
principal amount of Notes and will accrue interest at the rate of
10.50% per annum. The Notes will mature on or about January 28, 2030 and will be secured on a
second-lien basis by substantially all of the Company's assets,
subject to customary exclusions.
The Offering is expected to close on or about January 28, 2025, subject to customary closing
conditions.
Upon closing of the Offering, Bonterra will be strategically
positioned to continue to develop its assets in the Cardium,
Charlie Lake and Montney, as well as advance its acquisition
strategy through enhanced liquidity and access to capital.
The Notes are being offered for sale in each of the provinces
of Canada to "accredited investors" on a private
placement basis in accordance with Canadian securities laws. The
Notes have not been, and will not be, qualified for distribution
in Canada by a prospectus and are being offered and sold
in Canada only pursuant to exemptions from the prospectus
requirements of Canadian securities laws. The Notes have not and
will not be registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act"), and may not be offered or sold
in the United States or to a U.S.
Person (as defined in Regulation S under the U.S. Securities
Act).
This press release does not constitute an offer to sell, or a
solicitation of an offer to buy, any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such an offer, solicitation, or sale would be unlawful.
ABOUT BONTERRA
Bonterra Energy Corp. is a conventional oil and gas corporation
forging a grounded path forward for Canadian energy. Operations
include a large, concentrated land position in Alberta's Pembina Cardium, one of Canada's largest oil plays. Bonterra's
liquids-weighted Cardium production provides a foundation for
implementing a return of capital strategy over time, which is
focused on generating long-term, sustainable growth and value
creation for shareholders. Emerging Charlie Lake and Montney resource plays are expected to provide
enhanced optionality and an expanded potential development runway
for the future. Our shares are listed on the Toronto Stock Exchange
under the symbol "BNE" and we invite stakeholders to follow us on
LinkedIn and X (formerly Twitter) for ongoing updates and
developments.
Forward Looking Information
Certain statements contained in this release include statements
which contain words such as "anticipate", "could", "should",
"expect", "seek", "may", "intend", "likely", "will", "believe" and
similar expressions, relating to matters that are not historical
facts, and such statements of our beliefs, intentions and
expectations about development, results and events which will or
may occur in the future, constitute "forward-looking information"
within the meaning of applicable Canadian securities legislation
and are based on certain assumptions and analysis made by us
derived from our experience and perceptions. Forward-looking
information in this release includes information relating to the
Offering of Notes, the completion of the Offering and the use of
proceeds therefrom, including the redemption of the debentures.
All such forward-looking information is based on certain
assumptions and analyses made by us in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are
appropriate in the circumstances. The risks, uncertainties, and
assumptions are difficult to predict and may include, without
limitation: potential changes in the regulatory and legislative
environment; political uncertainty and instability in North America and internationally; volatility
in interest and tax rates; operating risks inherent in the oil and
gas industry; changes in general economic conditions including the
capital and credit markets; volatility of oil and natural gas
prices; oil and gas product supply and demand; risks inherent in
the ability to generate sufficient cash flow from operations to
meet current and future obligations; the stability of general
economic conditions; and assumptions relating to regulatory
conditions and all necessary consents and approvals being obtained
in connection with the Offering. The foregoing factors are not
exhaustive.
Actual results, performance or achievements could differ
materially from those expressed in, or implied by, this
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do, what
benefits will be derived therefrom. Except as required by law,
Bonterra disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise. The forward-looking
information contained herein is expressly qualified by this
cautionary statement.
SOURCE Bonterra Energy Corp.
