Cardinal Energy Ltd. ("Cardinal" or the "Company") is pleased to announce that it has completed its previously announced offering (the "Offering") of senior subordinated unsecured debentures ("Debentures") with a syndicate of underwriters co-led by CIBC Capital Markets, RBC Capital Markets and ATB Capital Markets, with CIBC Capital Markets and RBC Capital Markets acting as joint-bookrunners, and including BMO Capital Markets, Peters & Co. Limited, Canaccord Genuity Corp. and Raymond James Ltd. (collectively, the "Underwriters"), on a bought deal basis.
In connection with the Offering, Cardinal issued $40 million of Debentures, plus an additional $5 million of Debentures issued on the full exercise of the option granted to the Underwriters to increase the total size of the Offering to $45 million.
The Debentures bear interest at a rate of 8.25% per annum, payable semi-annually in arrears on the last day of March and September of each year, commencing on September 30, 2025, and will mature on September 30, 2030. The Debentures will commence trading today on the Toronto Stock Exchange under the symbol "CJ.DB.A".
The Company intends to use the net proceeds of the Offering to first repay and reduce the indebtedness of its outstanding senior credit facility, then to de-risk the completion of the Company's Reford thermal facility and accelerate the de-risking of the Company's Kelfield thermal oil opportunity. As well the Company may use some of the proceeds for land and seismic acquisitions to delineate other thermal oil opportunities available to the Company.