Obsidian Energy Announces Offering and Pricing of $175 Million, 5-Year Senior Unsecured Notes due in 2030 and Redemption of Existing $80.8 Million Senior Unsecured Notes due in 2027

Executive Summary

• Obsidian Energy entered into an underwriting agreement to issue $175 million of 8.125% five‑year senior unsecured notes due December 3, 2030 on a private‑placement basis.
• Proceeds will be used to redeem $80.8 million of existing 11.95% senior notes (due July 27, 2027), reduce indebtedness under its $235 million syndicated credit facility, and cover transaction expenses.
• The offering is expected to close on or about December 3, 2025, after which the credit facility will be drawn down to approximately $5 million, strengthening the balance sheet amid commodity price volatility.

Key Details

• Notes issued: 8.125% senior unsecured notes, five‑year term, principal amount $175 million, issued at par.
• Maturity: December 3, 2030.
• Use of proceeds:
• Redemption of existing 11.95% senior notes (2027 Notes) – $80.8 million.
• Pay down indebtedness under the syndicated credit facility.
• Cover related transaction expenses.
• Credit facility status post‑offering: Expected to be drawn down to roughly $5 million of the $235 million facility.
• Closing date: Anticipated on or about December 3, 2025, subject to customary closing conditions.
• Underwriters / Bookrunners: BMO Capital Markets and RBC Capital Markets.
• Offering structure: Private placement in Canadian provinces and the United States under applicable securities law exemptions (Rule 144A, Rule 506, Regulation S).
• Redemption notice: Obsidian has given formal notice of redemption for the 2027 Notes, conditional on successful closing of this offering.

Notable Quotes

“Given the strength in the credit markets, the Company took the opportunity to refinance our unsecured notes at a considerably lower interest rate than our previous note issue,” said Stephen Loukas, President and CEO.
“This refinancing further strengthens our already solid balance sheet during this period of commodity price volatility…provides significant flexibility to grow our production at Peace River and Willesden Green…”