MEG Seeks Commitments With Barclays, Others to Expand Facility
MEG Energy Corp. (MEG) announced that it is seeking commitments to expand its senior secured revolving credit facility from US$500 million to US$1 billion. In addition, MEG intends to extend the maturity of its revolving credit facility by one year to 2017, as well as reduce the associated fees and interest rates.
MEG has appointed Barclays Capital and BMO Capital Markets as joint lead arrangers and joint bookrunners for the amendment.
MEG believes that current market conditions offer an attractive opportunity to expand its revolving credit facility, providing greater financial flexibility in a cost-effective manner. The transaction is expected to be completed through an amendment of its existing credit agreement.
MEG Energy Corp. is focused on sustainable in situ oil sands development and production in the southern Athabasca oil sands region of Alberta, Canada.