Gibson Energy Closes $350 Million Senior Notes Offering
Gibson Energy Successfully Closes $350 Million Note Offering
CALGARY, Alberta – Gibson Energy Inc. (TSX:GEI) has proudly announced the successful closure of its offering of $350 million senior unsecured notes. These notes, carrying an interest rate of 4.45%, are set to mature on November 12, 2031, providing the company with significant funding capabilities.
Financial Ratings and Use of Proceeds
The offering has been favorably rated, receiving a "BBB–" from S&P Global Ratings and a "BBB (low)" with a stable outlook from DBRS Morningstar. These ratings affirm the company's stable financial outlook and reliability in meeting its financial commitments.
Proceeds from this offering, along with available cash resources, have been utilized to redeem all outstanding medium-term notes totaling $350 million, which carried a higher interest rate of 5.80% and were due in July 2026. This strategic move emphasizes Gibson's commitment to optimizing its capital structure by minimizing costly debt.
Details of the Offering
The senior unsecured notes were made available via a private placement approach in Canada through a group of agents, led by RBC Capital Markets and CIBC Capital Markets, with the participation of BMO Capital Markets. This structure allowed Gibson to navigate the securities laws effectively while ensuring robust investor interest in the offering.
The company clarified that the notes have not been registered under U.S. securities regulations and thus cannot be offered or sold in the United States. This measure is essential for maintaining compliance and safeguarding the interests of all investors involved.
About Gibson Energy
As a leading liquids infrastructure company, Gibson Energy specializes in an extensive range of services, including the storage, processing, and transportation of liquids and refined products. Its operations span across North America, with key terminal facilities located in Hardisty and Edmonton, Alberta, as well as in Ingleside and Wink, Texas, alongside a facility in Moose Jaw, Saskatchewan.
Investors can find Gibson Energy shares trading under the symbol GEI on the Toronto Stock Exchange. The company is steadfastly focused on enhancing shareholder value through responsible management of its assets and providing top-tier infrastructure services to meet the increasing energy demands.
Contact Information
For inquiries or further information, please reach out to the investor relations department at Gibson Energy by calling (403) 776-3077 or via email at investor.relations@gibsonenergy.com. The team is committed to providing support and insights into the company's strategies and performance.
Frequently Asked Questions
What is the total amount raised in Gibson's note offering?
Gibson's recent note offering raised a total of $350 million.
What are the key features of the new notes issued by Gibson Energy?
The new notes carry an interest rate of 4.45% and will mature on November 12, 2031.
Why did Gibson Energy redeem its previous medium-term notes?
They redeemed the previous notes to reduce interest payments and optimize their capital structure.
Where does Gibson Energy operate?
Gibson Energy operates primarily in Alberta and Texas, with key facilities in Hardisty, Edmonton, and Ingleside.
How can investors get in touch with Gibson Energy for more information?
Investors can contact Gibson Energy's investor relations at (403) 776-3077 or by emailing investor.relations@gibsonenergy.com.
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