Tourmaline Oil to issue $250-million in senior notes

Executive Summary

• Tourmaline Oil Corp. has agreed to issue $250 million in aggregate principal amount of senior unsecured notes due March 16, 2031.
• The notes carry a fixed interest rate of 3.934% per annum, payable semi-annually, and have been assigned a provisional rating of BBB (high) with a stable trend by DBRS Ltd.
• Net proceeds will be used to repay existing indebtedness and for general corporate purposes, supporting the company's strategy of diversifying low-cost capital sources.

Key Details

• Instrument: Senior unsecured notes due March 16, 2031.
• Principal Amount: $250 million aggregate principal amount.
• Pricing: Issued at par for aggregate gross proceeds of $250 million.
• Interest Rate: Fixed rate of 3.934% per annum.
• Payment Schedule: Semi-annual payments on March 16 and September 16 of each year, commencing September 16, 2026.
• Credit Rating: Provisional rating of BBB (high) with a stable trend by DBRS Ltd. (Morningstar DBRS).
• Ranking: Direct, unsecured obligations ranking equally with all other present and future unsecured and unsubordinated indebtedness.
• Offering Structure: Offered in Canada on a private-placement basis in reliance upon exemptions from prospectus requirements; offered on a best-efforts basis through a syndicate of agents co-led by Scotiabank, CIBC Capital Markets, and National Bank Capital Markets.
• Expected Issuance Date: On or about March 16, 2026, subject to customary closing conditions.
• Use of Proceeds: Repayment of existing indebtedness and for general corporate purposes.
• Financial Context: Company has set a long-term net debt target of $1.75 billion (approximately 0.5 times net debt to cash flow).