Athabasca Oil Corp. (TSX: ATH) successfully completed a private placement offering of C$200 million aggregate principal amount of 6.75% senior unsecured notes due on August 9, 2029. The net proceeds from this offering, combined with existing cash reserves, were used to redeem US$157 million aggregate principal amount of 9.75% senior secured second lien notes due on November 1, 2026.
In a statement, Athabasca highlighted its proactive approach to refinancing its term debt on favorable terms, leveraging its robust business fundamentals and positive credit market conditions. As a result, the company experienced a decrease in its outstanding debt levels and enhanced strategic flexibility to navigate commodity price fluctuations.
The company reported being in a net cash position of around C$110 million and having liquidity of approximately C$400 million, including C$270 million in cash reserves. Athabasca anticipates a reduction of about C$6 million in annual debt servicing costs due to the optimized capital structure resulting from this refinancing initiative.
The offering of the notes was conducted in Canada on a private placement basis under specific prospectus exemptions. Athabasca Oil is an energy company based in Calgary, focusing on developing thermal and light oil assets in Alberta’s Western Canadian Sedimentary Basin.
As of Friday, shares of Athabasca Oil Corp. (TSX: ATH) were trading at C$5.16, representing a 0.39% decrease. Year-to-date, the stock has gained 24.22%.
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