Saturn Oil & Gas Inc. Announces Closing of US$650 Million Senior Secured Second Lien Note Offering

Rhea-AI Summary

Saturn Oil & Gas has completed a private placement, raising $650 million through senior secured second lien notes due 2029 with an interest rate of 9.625%. The offering was made under Rule 144A and Regulation S of the Securities Act of 1933, targeting eligible purchasers. The notes weren't registered under U.S., Canadian, or other international securities laws and can't be sold in these jurisdictions without proper registration or exemption. Saturn has no plans to register these notes in the future. This announcement is not an offer to sell or buy securities.

Positive

• Raised $650 million through senior secured second lien notes.
• The notes have a 9.625% interest rate, providing a clear return for investors.
• The funding is secured, potentially strengthening the company's financial position.
• The notes are due in 2029, indicating a long-term funding strategy.

Negative

• The notes are not registered under U.S., Canadian, or other international securities laws, limiting their marketability.
• No intention to register the notes in the future, which may restrict liquidity and resale options.
• A high-interest rate of 9.625% could indicate higher borrowing costs for the company.
• to eligible purchasers under specific regulations, reducing the potential investor pool.

Calgary, Alberta--(Newsfile Corp. - June 14, 2024) - Saturn Oil & Gas Inc. (TSX: SOIL) (FSE: SMKA) (OTCQX: OILSF) ("Saturn" or the "Company") today announced that it has closed its previously announced private placement (the "Offering"), to eligible purchasers under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the "Securities Act"), of US $650 million in aggregate principal amount of 9.625% senior secured second lien notes due 2029 (the "Notes") at par.

The Notes to be offered have not been registered under the Securities Act, Canadian securities laws, or the securities laws of any other jurisdiction, and may not be offered or sold within the United States, or to or for the account or benefit of any U.S. Person, absent registration or an applicable exemption from registration requirements. The Company is under no obligation, and has no intention to, register the Notes under the Securities Act, Canadian securities laws or the securities laws of any other jurisdiction in the future.

This press release does not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Saturn Oil & Gas Inc.

Saturn Oil & Gas Inc. is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities. Saturn has assembled an attractive portfolio of free-cash flowing, low-decline operated assets in Saskatchewan and Alberta that provide a deep inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an ESG-focused culture, Saturn's goal is to increase reserves, production and cash flows at an attractive return on invested capital.

Saturn's shares are listed for trading on the TSX under ticker 'SOIL' on the Frankfurt Stock Exchange under symbol 'SMKA' and on the OTCQX under the ticker 'OILSF'.

Saturn Oil & Gas Investor & Media Contacts:

John Jeffrey, MBA - Chief Executive Officer
Tel: +1 (587) 392-7900
Info@saturnoil.com

Kevin Smith, MBA - VP Corporate Development
Tel: +1 (587) 392-7900
info@saturnoil.com

All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213002

FAQ

What did Saturn Oil & Gas announce on June 14, 2024?

Saturn Oil & Gas announced the closing of a US$650 million senior secured second lien note offering.

What is the interest rate of the notes issued by Saturn Oil & Gas?

The notes have a 9.625% interest rate.

When are the Saturn Oil & Gas notes due?

The notes are due in 2029.

Are the Saturn Oil & Gas notes registered under U.S. securities laws?

No, the notes are not registered under U.S., Canadian, or any other international securities laws.

What is the stock symbol for Saturn Oil & Gas in the OTC market?

The stock symbol for Saturn Oil & Gas in the OTC market is OILSF.