Oil-sands concern MEG Energy this afternoon returned to market after 16 months with an offering of senior notes via joint bookrunners Barclays, BMO Capital Markets, and Credit Suisse, according to sources. Terms on the BB/B1 transaction were inked at the tight end of guidance, and oversubscription allowed for a $100 million upsizing, at $800 million. Proceeds are for general corporate purposes, including funding capital investments. The 144A-for-life bond issue follows a maturity extension exercise on MEG’s revolver in March, which boosted the size to $1 billion, from $500 million, and extended the maturity by one year, to 2017. Terms:
| Issuer | MEG Energy | |
| Ratings | BB/B1 | |
| Amount | $800 million | |
| Issue | senior notes (144A for life) | |
| Coupon | 6.375% | |
| Price | 100 | |
| Yield | 6.375% | |
| Spread | T+491 | |
| FRN eq. | L+477 | |
| Maturity | Jan. 30, 2023 | |
| Call | nc5 | |
| Trade | July 16, 2012 | |
| Settle | July 19, 2012 (t+3) | |
| Books | Barc/BMO/CS | |
| Co’s. | RBC, CIBC, HSBC, MS | |
| Px talk | 6.5% area | |
| Notes | upsized by $100 million |