Perpetual Energy to issue C$17.4 million of exchange notes in offer

By Susanna Moon

Chicago, Jan. 24 – Perpetual Energy Inc. said it has exchanged about C$8.4 million of its C$36,013,000 8¾% senior notes due March 15, 2018 and C$9 million principal amount of its C$24.56 million 8¾% senior notes due July 23, 2019.

In exchange, Perpetual will issue about C$17.4 million principal amount of new exchange senior notes, according to a company notice.

After the exchange, the outstanding amount will be C$27.6 million principal amount of 2018 notes and about C$15.6 principal amount of 2019 notes.

The exchange offer ended at 5 p.m. ET on Jan. 23, extended from 5 p.m. ET on Jan. 11 and, before that, 5 p.m. ET on Dec. 23.

When the offer was last extended, the company also added that the exchange was no longer contingent on holders tendering at least C$20 million principal amount of the outstanding notes.

As of that day, holders had tendered for exchange C$17.4 million principal amount of notes in the offer, or C$8.4 million principal amount of the 2018 notes and C$9 million principal amount of the 2019 notes.

As announced Dec. 12, the company will issue C$1,000 principal amount of new 8¾% senior notes due Jan. 11, 2022 for each C$1,000 principal amount of existing notes tendered for exchange.

The exchange notes will be issued with the same terms as the existing notes other than the extended maturity date and an increased coupon the first year of 9¾% instead of 8¾%, which is the equivalent of C$10.00 per C$1,000 principal amount of notes tendered for exchange.

Holders will also receive accrued interest up to but excluding the expiration date. The amount per C$1,000 principal amount will be C$28.29 for the 2018 notes and C$41.23 for the 2019 notes in cash.

Perpetual plans to repay any 2018 notes and 2019 notes not tendered for exchange before their respective maturity dates of March 15, 2018 and July 23, 2019 through proceeds from excess fund flows, asset sales or refinancing, the company said.

Scotia Capital Inc. (888 776-3666 or michael.lay@scotiabank.com) is the dealer manager and solicitation agent. Kingsdale Shareholder Services (855 682-2031 or contactus@kingsdaleshareholder.com) has been appointed as the information agent. Computershare Investor Services Inc. (800 564-6253 or corporateactions@computershare.com) is the depositary.

Perpetual Energy is a Calgary, Alta., energy company.

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