Frontera Energy Expects to Issue $350 Million USD in Notes this Week

Canadian oil company Frontera Energy Corporation this week priced the offering of $350 million USD in senior unsecured notes that it aims to use to buy back $250 million USD in previously issued notes. The remaining $100 million USD would be used for “general corporate purposes,” according to the Toronto-based company.

The notes would be due 2023 with a coupon rate of 9.7%, replacing the previously issued notes that were due in 2021 at a rate of 10%. The new notes have been rated BB-(EXP) by S&P Global Ratings and B+(EXP)/RR4 by Fitch Ratings, according to Frontera Energy.

While the closing of the issuance is “expected to occur on or about June 25,” according to the company, it added in a statement that “there can be no assurances that the issuance and sale of the notes will be consummated.”

The notes have yet to be registered under the U.S. Securities Act (or securities laws in another nation), a requirement before they can be sold in the United States.