By Marisa Wong
Los Angeles, Sept. 13 – Tamarack Valley Energy Ltd. announced it entered into an underwriting agreement to sell on a private placement basis C$100 million of 7¼% senior sustainability-linked notes due May 10, 2027.
The notes will be issued at $940 per $1,000 principal amount, plus accrued interest from and including May 10 to but excluding the closing date, according to a press release.
The notes will be issued under the same trust indenture that covers Tamarack’s previously issued C$200 million of 7¼% senior sustainability-linked notes due May 10, 2027 and will form a single series with the existing notes.
Tamarack’s sustainability-linked bond framework sets out some sustainability performance targets aligned with the company’s overall corporate sustainability strategy, including: scope 1 and 2 emissions intensity reductions of 39% by 2025 over the 2020 baseline; and indigenous workforce participation of 6% or greater by 2025.
Failure to meet these targets will result in a step-up in the notes’ interest rate of 75 basis points for the emissions reduction target and 25 bps for the indigenous workforce participation target from and including May 10, 2026.
RBC Capital Markets and National Bank Financial Markets are acting as joint bookrunners and sustainability-linked bond structuring advisors.
Closing of the private placement is expected to occur on or around Sept. 22.
The company intends to use proceeds to fund a portion of the purchase price for its previously announced acquisition of DeltaStream Energy Corp. The private placement is not conditioned on the acquisition, the company noted.
Tamarack is an oil and gas exploration and production company based in Calgary, Alta.
| Issuer: | Tamarack Valley Energy Ltd.
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| Amount: | C$100 million
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| Issue: | Sustainability-linked notes
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| Maturity: | May 10, 2027
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| Bookrunners: | RBC Capital Markets and National Bank Financial Markets
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| Sustainability advisers: | RBC Capital Markets and National Bank Financial Markets
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| Coupon: | 7¼%
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| Price: | 94
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| Settlement date: | Sept. 22
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| Total issuance: | C$300 million, including C$200 million issued on Feb. 10
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