MEG Energy Corp. 's Proposed US$800 Million Senior Unsecured Notes Rated 'BB-' (Recovery Rating: '2') - S&P Global Ratings’ Credit Research

MEG Energy Corp. 's Proposed US$800 Million Senior Unsecured Notes Rated 'BB-' (Recovery Rating: '2')

MEG Energy Corp. 's Proposed US$800 Million Senior Unsecured Notes Rated 'BB-' (Recovery Rating: '2') - S&P Global Ratings’ Credit Research
MEG Energy Corp. 's Proposed US$800 Million Senior Unsecured Notes Rated 'BB-' (Recovery Rating: '2')
Published Jan 16, 2020
3 pages (1643 words) — Published Jan 16, 2020
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Abstract:

TORONTO (S&P Global Ratings) Jan. 16, 2020--S&P Global Ratings today said it assigned its 'BB-' issue-level rating and '2' recovery rating to MEG Energy Corp.'s proposed US$800 million issuance of senior unsecured notes due 2027. The '2' recovery rating indicates our expectation of substantial (capped at 70%-90%; estimated recovery of 85%) recovery in our simulated default scenario, resulting in an issue-level rating one notch above our 'B+' issuer credit rating on the company. MEG intends to use the debt proceeds to fully repay its 6.375% US$800 million unsecured notes due 2023. The new notes will rank pari passu with the existing 2024 unsecured notes. Concurrent with the refinancing transaction, the company plans to repay US$100 million of its original US$750

  
Brief Excerpt:

...January 16, 2020 TORONTO (S&P Global Ratings) Jan. 16, 2020--S&P Global Ratings today said it assigned its '##-' issue-level rating and '2' recovery rating to MEG Energy Corp.'s proposed US$800 million issuance of senior unsecured notes due 2027. The '2' recovery rating indicates our expectation of substantial (capped at 70%-90%; estimated recovery of 85%) recovery in our simulated default scenario, resulting in an issue-level rating one notch above our 'B+' issuer credit rating on the company. MEG intends to use the debt proceeds to fully repay its 6.375% US$800 million unsecured notes due 2023. The new notes will rank pari passu with the existing 2024 unsecured notes. Concurrent with the refinancing transaction, the company plans to repay US$100 million of its original US$750 million secured notes due 2025 from cash on hand. All other ratings on MEG are unchanged, including our 'B+' long-term issuer credit rating with a stable outlook. On Jan. 14, 2020, we revised our outlook on MEG to...

  
Report Type:

Ratings Action

Ticker
557089Z@CN
Issuer
MEG Energy Corp.
GICS
Oil & Gas Exploration & Production (10102020)
Sector
Global Issuers
Country
Canada
Region
Canada
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "MEG Energy Corp. 's Proposed US$800 Million Senior Unsecured Notes Rated 'BB-' (Recovery Rating: '2')" Jan 16, 2020. Alacra Store. May 23, 2025. <http://www.alacrastore.com/s-and-p-credit-research/MEG-Energy-Corp-s-Proposed-US-800-Million-Senior-Unsecured-Notes-Rated-BB-Recovery-Rating-2-2368794>
  
APA:
S&P Global Ratings’ Credit Research. (). MEG Energy Corp. 's Proposed US$800 Million Senior Unsecured Notes Rated 'BB-' (Recovery Rating: '2') Jan 16, 2020. New York, NY: Alacra Store. Retrieved May 23, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/MEG-Energy-Corp-s-Proposed-US-800-Million-Senior-Unsecured-Notes-Rated-BB-Recovery-Rating-2-2368794>
  
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