TSX: TVE
/NOT FOR PUBLICATION OR DISTRIBUTION IN
THE UNITED STATES. ANY FAILURE TO
COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S.
SECURITIES LAW./
CALGARY, AB, Feb. 2, 2022 /CNW/ - Tamarack Valley Energy Ltd.
("Tamarack" or the "Company") (TSX: TVE) announces
that it has entered into an underwriting agreement to sell, on a
private placement basis, $200 million aggregate principal
amount of 7.25% senior unsecured sustainability-linked notes due
May 10, 2027 (the "Notes").
The Notes will be issued at par under a trust indenture and will be
general unsecured obligations of Tamarack ranking pari passu with
all of the Company's existing and future senior unsecured
indebtedness (the "Offering"). Closing of the Offering is
expected to occur on or about February [10], 2022, subject
to satisfaction of customary closing conditions.
Subject to completion of the Offering, Tamarack intends to use
the net proceeds of the Offering to fund a portion of the purchase
price for Tamarack's previously announced acquisition of Crestwynd
Exploration Ltd. and repay amounts outstanding under the Company's
sustainability-linked credit facility (the "SLL Facility").
The Notes will eliminate the requirement for the previously
announced separate and additional $100
million credit facility from the existing syndicate.
The Notes are being issued in accordance with Tamarack's
Sustainability-Linked Bond Framework (the "SLB
Framework"), which sets out certain sustainability
performance targets ("SPTs") that are aligned with
Tamarack's overall corporate sustainability strategy and previous
SLL Facility, including: i) Scope 1 and 2 emissions intensity
reductions of 39% by 2025 over the 2020 baseline, and; ii)
Indigenous workforce participation of 6% or greater by 2025.
Details of the SLB Framework are available on the Company's
website. Failure to meet the SPTs will result in a step-up in the
interest rate payable of 75 basis points for the emissions
reduction SPT and 25 basis points for the Indigenous workforce
participation SPT from and including May
10, 2026.
National Bank Financial Markets and RBC Capital Markets are
acting as Joint-Bookrunners and Sustainability-Linked Bond
Structuring Advisors for the Offering. S&P Global Markets has
provided a second party opinion of the SLB Framework, confirming
alignment with the International Capital Market Association's
Sustainability-Linked Bond Principles.
The Notes will not be qualified for distribution to the public
or registered under the securities laws of any province or
territory of Canada or in
the United States and were only
offered in the provinces of Canada
and in the United States pursuant
to applicable private placement exemptions to qualified
institutional investors
This release is not an offer of securities of the Company for
sale in the United States. The
Notes have not and will not be registered under the U.S. Securities
Act of 1933, as amended, and the Notes may not be offered or sold
in the United States except as
pursuant to an applicable exemption from such registration. No
public offering of securities is being made in the United States.
About Tamarack Valley Energy Ltd.
Tamarack is an oil and gas exploration and production company
committed to creating long-term value for its shareholders through
sustainable free funds flow generation, financial stability and the
return of capital. The Company has an extensive inventory of
low-risk, oil development drilling locations focused primarily on
Charlie Lake, Clearwater and EOR plays in Alberta. Operating as a responsible corporate
citizen is a key focus to ensure we deliver on our environmental,
social and governance (ESG) commitments and goals. For more
information, please visit the Company's website at
www.tamarackvalley.ca.
Forward Looking Information
This press release contains certain forward-looking information
(collectively referred to herein as "forward-looking statements")
within the meaning of applicable Canadian securities laws.
Forward-looking statements are often, but not always, identified by
the use of words such as "guidance", "outlook", "anticipate",
"target", "plan", "continue", "intend", "consider", "estimate",
"expect", "may", "will", "should", "could" or similar words
suggesting future outcomes. More particularly, this press release
contains statements concerning: the completion of the Offering on
the terms anticipated, or at all, the anticipated use of proceeds
of the Offering, the elimination of the previously announced
separate and additional $100 million
credit facility from the existing syndicate and the timing and
closing of the Offering.
Forward-looking statements are based on a number of material
factors, expectations or assumptions of Tamarack which have been
used to develop such statements and information but which may prove
to be incorrect. Although Tamarack believes that the expectations
reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking
statements because Tamarack can give no assurance that such
expectations will prove to be correct.
The forward-looking statements contained in this press release
are made as of the date hereof and the Company does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, except as required by applicable law.
The forward-looking statements contained herein are expressly
qualified by this cautionary statement.
SOURCE Tamarack Valley Energy