Obsidian Energy Announces Closing 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 successfully closed a private placement of $175 million aggregate principal amount of 8.125% five‑year senior unsecured notes due December 3, 2030 (the “2030 Notes”).
• Proceeds were used to redeem the remaining $80.8 million of 11.95% senior unsecured notes due July 27, 2027 and to reduce indebtedness under its $235 million syndicated credit facility (now ~$8 million outstanding).
• The financing was led by BMO Capital Markets and RBC Capital Markets as bookrunners; the notes were issued at par and are not qualified for public distribution.

Key Details

• Offering Size: $175 million aggregate principal amount.
• Interest Rate & Maturity: 8.125% senior unsecured notes, five‑year term, due December 3, 2030.
• Pricing: Issued at par (100%).
• Use of Proceeds:
• Redemption of the balance of $80.8 million of 11.95% senior unsecured notes due July 27, 2027 (completed concurrently).
• Repayment of indebtedness under the company’s $235 million syndicated credit facility, leaving approximately $8 million outstanding at closing.
• Payment of related transaction expenses.
• Bookrunners: BMO Capital Markets and RBC Capital Markets.
• Legal Structure: Direct senior unsecured obligations of Obsidian Energy, ranking equally with all other present and future senior unsecured indebtedness; issued under a trust indenture.
• Distribution Restrictions: Notes are not qualified for public distribution in Canada or the United States and are offered only pursuant to applicable exemptions (Rule 144A, Regulation S).

Notable Quotes

(No executive quotes were included in the release.)