Gibson Energy Announces Closing of $650 Million Medium Term Note Offering

Gibson Energy Inc. (“Gibson” or the “Company”), (TSX: GEI), announced today that it has closed the previously announced offering of $650 million of senior unsecured medium term notes consisting of $325 million of 2.45% notes maturing on July 14, 2025 and $325 million of 2.85% notes maturing on July 14, 2027.

Gibson intends to use the net proceeds from the sale of the notes for the redemption of its outstanding $600 million 5.25% senior unsecured notes due July 15, 2024 (the “2024 Notes”), to reduce outstanding indebtedness under its revolving credit facility and for general corporate purposes. As a result of the blended coupon rate of the notes being lower than that of the 2024 Notes, following the redemption Gibson expects annualized interest savings of approximately $16 million over the remaining term of the 2024 Notes.

The notes have been assigned ratings of “BBB–” by S&P Global Ratings and “BBB (low)” with a “Stable” trend by DBRS Morningstar.

The notes were offered through a syndicate of investment dealers led by CIBC Capital Markets and RBC Capital Markets, as well as BMO Nesbitt Burns and Scotia Capital, under Gibson’s short form base shelf prospectus dated June 26, 2019, a prospectus supplement dated September 3, 2019 and pricing supplements dated June 22, 2020.

This news release does not constitute an offer to sell or the solicitation of an offer to buy the notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The notes have not been approved or disapproved by any regulatory authority. The notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any securities laws of any state of the United States and may not be offered, sold or delivered in the United States or to, or for the account or benefit of, United States persons.