Cenovus announces closing of US$1.25 billion offering of senior notes

    You can use your smart phone to browse stories in the comfort of your hand. Simply browse this site on your smart phone.

    Using an RSS Reader you can access most recent stories and other feeds posted on this network.

    SNetwork Recent Stories

Cenovus announces closing of US$1.25 billion offering of senior notes

by ahnationtalk on September 14, 202111 Views

Calgary, Alberta (September 13, 2021) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has completed a public offering in the United States (the “Offering”) of US$1,250,000,000 in senior notes, consisting of US$500,000,000 of 2.650% senior unsecured notes due 2032 and US$750,000,000 of 3.750% senior unsecured notes due 2052 (collectively, the “Notes”). The Notes were issued under Cenovus’s short form base shelf prospectus dated September 19, 2019 and a prospectus supplement dated September 9, 2021 filed with securities regulatory authorities in Canada and the United States.

Deleveraging remains a top priority for Cenovus. The net proceeds of the Offering will be used to partially finance the repurchase of certain of the company’s outstanding senior notes pursuant to previously announced tender offers. In the event there are any net proceeds of the Offering not used to finance such repurchase of notes, the company intends to use such net proceeds to reduce indebtedness and for general corporate purposes. The company expects it will meet its interim net debt target of $10 billion within 2021, assuming current commodity prices and foreign exchange rates hold. Longer term, the company is focused on a net debt target of $8 billion or lower.

J.P. Morgan Securities LLC, BofA Securities, Inc. and MUFG Securities Americas Inc. acted as active joint book-running managers. The Offering was supported by additional advisors including: BMO Capital Markets Corp., Scotia Capital (USA) Inc., Mizuho Securities USA LLC, CIBC World Markets Corp., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, ATB Capital Markets Inc., SMBC Nikko Securities America, Inc., Desjardins Securities Inc., and Wells Fargo Securities, LLC.


Non-GAAP Measure
This news release references net debt, which is a non-GAAP measure. Net debt does not have a standardized meaning as prescribed by IFRS. Readers should not consider net debt in isolation or as a substitute for analysis of the company’s results as reported under IFRS. Net debt may be defined differently by different companies and therefore is not comparable to similar measures presented by other issuers. Net debt is defined as short-term borrowings, and the current and long-term portions of long-term debt, net of cash and cash equivalents and short-term investments. For more information on this and other non-GAAP measures presented by Cenovus and additional subtotals, refer to “Non-GAAP Measures and Additional Subtotals” on page 1 of Cenovus’s Management’s Discussion and Analysis (MD&A) for the period ended June 30, 2021 (available on SEDAR at sedar.com, on EDGAR at sec.gov and Cenovus’s website at cenovus.com).


Investor Relations:
Investor Relations general line

Media Relations general line


Send To Friend Email Print Story

Comments are closed.

NationTalk Partners & Sponsors Learn More