Obsidian to redeem $30-million in notes Aug. 29

Executive Summary

• Obsidian Energy Ltd. has announced the partial redemption of $30 million of its outstanding 11.95% senior unsecured notes due July 27, 2027.
• The redemption is executed on a pro rata basis with a redemption price of $1,029.88 per $1,000 principal amount, plus accrued interest, to be paid on August 29, 2025.
• The company intends to use available liquidity to fund the redemption, aiming to reduce future interest expenses, leaving $80.8 million in notes outstanding post-redemption.

Key Details

• Instrument: 11.95% Senior Unsecured Notes due July 27, 2027.
• Redemption Amount: $30.0 million of the $110.8 million aggregate principal amount currently outstanding.
• Redemption Price: $1,029.88 per $1,000 principal amount (102.988% of principal).
• Accrued Interest: Holders receive accrued and unpaid interest up to, but not including, the redemption date.
• Redemption Date: August 29, 2025.
• Post-Redemption Balance: $80.8 million of notes will remain outstanding.
• Use of Proceeds/Funding: The company intends to use available liquidity to pay the redemption price.
• Impact on Covenants: Upon completion, the maximum amount of any semi-annual free cash flow offer required under the trust indenture will be $17.0 million.
• Process: Formal notice delivered via Computershare Trust Company of Canada; non-registered holders must contact their brokers.

Notable Quotes

• "The company's strong balance sheet and liquidity position is enabling us to pay down a portion of our outstanding notes, thereby reducing our go-forward interest expense," commented Stephen Loukas, Obsidian Energy's president and chief executive officer.