Proceeds to go toward $17.7 billion Cenovus acquisition of ConocoPhillips’ oil sands and Deep Basin assets

Canadian producer Cenovus Energy Inc. (ticker: CVE) has priced a US$2.9 billion offering of senior notes as part of the company’s previously announced financing plan to fund the purchase of assets in Western Canada from ConocoPhillips (ticker: COP).

Cenovus is acquiring ConocoPhillips’ 50% interest in the FCCL Partnership, the companies’ jointly owned oil sands venture operated by Cenovus, as well as the majority of ConocoPhillips’ Deep Basin assets in Alberta and British Columbia.

Cenovus Prices US$2.9 Billion Offering of Senior Notes

Source: Cenovus Energy

Cenovus intends to use the net proceeds to finance a portion of the cash consideration payable for the acquisition.

The notes are to be issued in three series: US$1.2 billion principal amount of 4.25% senior notes due 2027, US$700 million principal amount of 5.25% senior notes due 2037, and US$1.0 billion principal amount of 5.40% senior notes due 2047.

Cenovus Prices US$2.9 Billion Offering of Senior Notes

Source: Cenovus Energy

The acquisition is expected to close in the second quarter of 2017.

Cenovus Prices US$2.9 Billion Offering of Senior Notes

Source: Cenovus Energy


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