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Perpetual Energy Inc. Announces Closing of Previously Announced Senior Unsecured Notes Offering and Notice of Redemption of 7.25% Subordinated Convertible Debentures


CALGARY, July 23, 2014 /CNW/ - (TSX:PMT) - Perpetual Energy Inc. ("Perpetual" or the "Corporation") is pleased to announce the closing of its offering of C$125 million aggregate principal amount of 8.75% Senior Unsecured Notes due July 23, 2019 (the "Notes") at par (the "Offering"). The Notes were offered in each Province of Canada on a private placement basis through a syndicate of underwriters led by Scotiabank, BMO Capital Markets and CIBC as joint book runners and including National Bank Financial, TD Securities, First Energy Capital and Peters & Co.

The net proceeds from this offering will be used to redeem with cash all of Perpetual's outstanding 7.25% convertible debentures, due to mature on January 31, 2015 for total cash payments of $99.9 million. Perpetual has provided notice for the early redemption on August 25, 2014 of the 7.25% convertible debentures to the Trustee. The additional proceeds of $25 million will be used to repay existing bank indebtedness under Perpetual's credit facility, assist in the future repayment of its 7.00% convertible debentures due to mature on December 31, 2015 and for general corporate purposes.

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an available exemption from such registration requirements. This news release does not constitute an offer to sell, or the solicitation of an offer to purchase, the Notes in the United States.

Forward-Looking Information

Certain information regarding Perpetual in this news release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws. The forward looking information includes, without limitation, the use of proceeds of the Offering and potential benefits to be derived therefrom. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release, which assumptions are based on management analysis of historical trends, experience, current conditions and expected future developments pertaining to Perpetual and the industry in which it operates as well as certain assumptions regarding the matters outlined above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Perpetual and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties, including without limitation those described under "Risk Factors" in Perpetual's MD&A for the year-ended December 31, 2013 and those included in other reports on file with Canadian securities regulatory authorities which may be accessed through the SEDAR website ( and at Perpetual's website ( Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of Perpetual's management at the time the information is released and Perpetual disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities law. 

SOURCE Perpetual Energy Inc.

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