Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) ("Cenovus") has closed its previously announced bought-deal common share financing. A total of 187.5 million common shares ("Common Shares") were sold at a price of $16.00 per share (the "Offering") for gross proceeds of $3.0 billion. The Offering was made through a syndicate of underwriters led by RBC Capital Markets and J.P. Morgan.
Cenovus intends to use the net proceeds from the Offering to finance a portion of the cash consideration payable for the purchase of assets in Western Canada from ConocoPhillips, the details of which were announced on March 29, 2017 in a news release issued by Cenovus (the "Acquisition"). In the event that the Acquisition is not completed, Cenovus may use the net proceeds of this Offering to, among other things, reduce its outstanding indebtedness, finance future growth opportunities including acquisitions and investments, finance its capital expenditures, repurchase outstanding Common Shares or for other general corporate purposes.
Cenovus Energy Inc.
Cenovus Energy Inc. is a Canadian integrated oil company. It is committed to applying fresh, progressive thinking to safely and responsibly unlock energy resources the world needs. Operations include oil sands projects in northern Alberta, which use specialized methods to drill and pump the oil to the surface, and established natural gas and oil production in Alberta and Saskatchewan. The company also has 50% ownership in two U.S. refineries. Cenovus shares trade under the symbol CVE, and are listed on the Toronto and New York stock exchanges.
SOURCE: Cenovus Energy Inc.
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