PrairieSky Royalty Closes Acquisition of Western Canadian Royalty Assets and Expands Sustainability-Linked Loan
December 15 2021 - 11:56AM
PrairieSky Royalty Ltd. ("
PrairieSky" or the
"
Company") (TSX: PSK) is pleased to announce that
it has closed the previously announced acquisition from Heritage
Royalty of over 1.9 million acres of royalty lands throughout
Alberta, Saskatchewan and Manitoba (the “
Royalty
Lands”) including over 1.7 million net acres of fee simple
mineral title lands; and (ii) extensive seismic assets that are
complementary to the Royalty Lands, for total cash consideration of
$728 million (the "
Acquisition"). The Acquisition
has an effective date of December 31, 2021.
Concurrent with closing the Acquisition,
PrairieSky expanded its unsecured revolving Sustainability-Linked
Credit Facility ("SLL Credit Facility") to $725
million from $425 million. The SLL Credit Facility provides for a
permitted increase to $800 million, subject to lender consent. The
maturity date of the SLL Credit Facility remains February 28, 2025,
and pricing and covenants are unchanged. The expanded SLL was used
to partially fund the Acquisition. The previously announced $500
million term loan provided by TD Securities Inc. (the "Term
Loan") was not drawn upon to fund the Acquisition and was
terminated concurrent with expansion of the SLL Credit
Facility.
On December 15, 2021, PrairieSky announced that
it had completed its bought deal offering of 17,169,500 common
shares at a price of $13.40 per common share, for aggregate gross
proceeds of approximately $230.1 million (the
"Offering"). The net proceeds of the Offering were
used to partially fund the Acquisition.
FORWARD LOOKING STATEMENTS &
INFORMATION
This press release includes certain statements
regarding PrairieSky’s future plans and operations and contains
forward-looking statements that we believe allow readers to better
understand our business and prospects. The information in this
press release could differ materially from those anticipated in the
forward-looking statements and information. By their nature,
forward-looking statements are subject to numerous risks and
uncertainties, some of which are beyond our control, including the
impact of general economic conditions, industry conditions,
volatility of commodity prices, lack of pipeline capacity, currency
fluctuations, imprecision of reserve estimates, royalties,
environmental risks, taxation, regulation, changes in tax or other
legislation, competition from other industry participants, the lack
of availability of qualified personnel or management, stock market
volatility, and our ability to access sufficient capital from
internal and external sources. In addition, PrairieSky is subject
to numerous risks and uncertainties in relation to acquisitions.
These risks and uncertainties include risks relating to the
potential for disputes to arise with counterparties, and limited
ability to recover indemnification under certain agreements. The
foregoing and other risks are described in more detail in
PrairieSky’s management’s discussion and analysis, PrairieSky’s
annual information form for the year ended December 31, 2020 and
PrairieSky’s final short form prospectus dated December 10, 2021 in
respect of the Offering, under the headings "Risk Management" and
"Risk Factors", respectively, each of which is available at
www.sedar.com.
Further, any forward-looking statement is made
only as of the date of this press release, and PrairieSky
undertakes no obligation to update or revise any forward-looking
statement or statements to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of unanticipated events, except as required by
applicable securities laws. New factors emerge from time to time,
and it is not possible for PrairieSky to predict all of these
factors or to assess in advance the impact of each such factor on
PrairieSky’s business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking
statements.
The forward-looking statements contained in this
document are expressly qualified by this cautionary statement.
ABOUT PRAIRIESKY ROYALTY
LTD.
PrairieSky is a royalty-focused company,
generating royalty revenues as petroleum and natural gas are
produced from its properties. PrairieSky has a diverse portfolio of
properties that have a long history of generating funds from
operations and that represent the largest and most concentrated
independently-owned fee simple mineral title position in Canada.
PrairieSky’s common shares trade on the Toronto Stock Exchange
under the symbol PSK.
FOR FURTHER INFORMATION PLEASE
CONTACT:
Andrew PhillipsPresident & Chief Executive
Officer PrairieSky Royalty Ltd.(587) 293-4005
Pamela KazeilVice President, Finance & Chief
Financial OfficerPrairieSky Royalty Ltd.(587) 293-4089
Investor Relations(587)
293-4000www.prairiesky.com
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