Strathcona Resources Ltd. Announces Proposed Private Offering of U.S.$500 Million of Senior Notes

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Jul 13, 2021, 13:28 ET

CALGARY, AB, July 13, 2021 /PRNewswire/ - Strathcona Resources Ltd. ("Strathcona") announced today that it is planning to commence, subject to market and other conditions, a private offering (the "Offering") under Rule 144A and Regulation S of the U.S. Securities Exchange Act of 1933, as amended (the "U.S. Securities Act"), to eligible purchasers, of U.S.$500 million in aggregate principal amount of senior unsecured notes due 2026 (the "Notes").

Strathcona intends to use the net proceeds from this Offering, if completed, to repay a portion of the outstanding borrowings under its revolving credit facility and operating facility without cancelling the revolving commitments thereunder and repay a portion of the outstanding borrowings under its term loan facility.

The offer and sale of the Notes have not been registered under the U.S. Securities Act or any United States state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A and non U.S. persons outside the United States in compliance with Regulation S under the U.S. Securities Act. In Canada, the offer and sale of the Notes have not been qualified for distribution to the public under a prospectus and the Notes will only be offered and sold pursuant to an applicable private placement exemption in certain provinces of Canada. This news release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Notes or any other security and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful.

About Strathcona Resources Ltd.

Strathcona is a Calgary-based private, oil-weighted company focused on the exploration, development and production of oil and gas resources in Western Canada. Strathcona is 100% owned by its private-equity sponsor, Waterous Energy Fund, and Strathcona employees.

Forward-Looking Information

This news release contains forward-looking statements including but not limited to the proposed Offering and issuance of the Notes, the timing and successful completion of the Offering and the use of proceeds therefrom. Such forward-looking information is based on certain assumptions and analysis made by Strathcona in light of its experience and perception of current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to Strathcona's expectations and predictions is subject to market conditions and a number of known and unknown risks and uncertainties which could cause actual results to differ materially from Strathcona's expectations. Other factors which could materially affect such forward-looking information are described in the risk factors detailed in the offering documentation prepared and delivered by Strathcona in connection with the Offering.

SOURCE Strathcona Resources Ltd.