CALGARY, June 14, 2013 /CNW/ - Gibson Energy Inc. ("Gibson") (TSX:GEI) today announced that its wholly-owned subsidiary, Gibson Energy ULC, has launched an initiative to refinance its existing senior secured credit facilities, currently consisting of a US$375 million revolving credit facility due June 2016 and a US$650 million term loan facility due June 2018.
Gibson is intending to enter into a new C$500 million senior secured revolving credit facility and to issue, on an exempt private placement basis, up to US/C$750 million aggregate principal amount of new senior unsecured notes (currency split to be determined), subject to market and other conditions. Net proceeds from the new senior unsecured notes are expected to be used to repay all outstanding indebtedness under the existing term loan facility, with the remaining net proceeds to be used for general corporate purposes. The new secured revolving credit facility is expected to be undrawn (except for the continuation of outstanding letters of credit) upon the closing of this refinancing plan.
The securities mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or applicable 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 Securities Act and applicable state securities laws. The securities mentioned herein have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the notes in Canada will be made on a basis which is exempt from the prospectus and dealer registration requirements of such securities laws. The securities mentioned herein will be offered and sold only to qualified institutional buyers in accordance with Rule 144A under the Securities Act, and outside the United States to non-U.S. persons in reliance on the "accredited investor" prospectus exemption in Canada and Regulation S under the Securities Act.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, any securities. No offer, solicitation, purchase or sale of securities will be made in any jurisdiction, in which such an offer, solicitation, purchase or sale would be unlawful.
Gibson is a large independent midstream energy company in Canada and a major participant in the crude oil transportation business in the United States, and is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, natural gas liquids, and refined products. Gibson transports hydrocarbons by utilizing its integrated network of terminals, pipelines, storage tanks, and truck fleet located throughout western Canada and the United States. The Company is also involved in the processing, blending and marketing of hydrocarbons, provision of water disposal and oilfield waste management services and is the second largest retail propane distribution company in Canada.
Certain statements contained in this news release constitute forward-looking information and statements, including but not limited to, the refinancing of Gibson Energy ULC's existing senior secured credit facilities. These statements relate to future events or Gibson's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words ''anticipate'', ''plan'', ''contemplate'', ''continue'', ''estimate'', ''expect'', ''intend'', ''propose'', ''might'', ''may'', ''will'', ''shall'', ''project'', ''should'', ''could'', ''would'', ''believe'', ''predict'', ''forecast'', ''pursue'', ''potential'' and ''capable'' and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Gibson does not undertake any obligations to publicly update or revise any forward looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in "Forward-Looking Statements" and "Risk Factors" included in Gibson's Annual Information Form dated March 5, 2013 as filed on SEDAR.
SOURCE: Gibson Energy Inc.