/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, Sept. 15, 2014 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE)
(BVC: PREC) (BOVESPA: PREB) announced today that it has successfully
priced an offering of U.S.$750 million in senior unsecured notes due
2025 at a coupon rate of 5.625% (the "Notes"), with closing expected to occur on September 19, 2014.
Substantially all of the net proceeds from the sale of the Notes will be
used by the Company to pay down short-term debt, including working
capital loans and credit facilities. The Notes have been assigned
ratings of BB+ by Fitch Ratings and Standard & Poor's Corporation, and
Ba2 by Moody's Investors Services. The Notes were placed through
Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, as Joint Lead Managers and Joint Bookrunners. The Notes
were placed with Qualified Institutional Buyers in the United States
pursuant to the registration exemptions provided by Rule 144A of the
Securities Act of 1933, and on a private placement basis in certain
provinces of Canada, as well as internationally as permitted by
applicable securities laws in such jurisdictions.
Ronald Pantin, the Company's Chief Executive Officer, commented:
"We are very pleased with the success of this offering, which will
replace short-term debt with longer-term debt. This is part of our
corporate debt liability management strategy aimed at reducing interest
rates and increasing the term to maturity of the Company's long-term
debt. The order book for the offering was multiple times oversubscribed
with broad participation from over 125 investors in the United States,
Canada, Latin America, Europe and Asia, which demonstrates the
continued confidence of international investors in Pacific Rubiales,
its business strategy and future prospects."
The Company has applied to admit the Notes for listing on the Official
List of the Luxembourg Stock Exchange and to trade the Notes on its
Euro MTF Market. The Notes have not been and will not be registered
under the United States Securities Act of 1933, as amended, or any
state securities laws, and may not be offered or sold in the United
States or to, or for the account or benefit of, U.S. persons absent
registration or an applicable exemption from registration
requirements. This news release does not constitute an offer to sell
or a solicitation of an offer to sell any of the Notes. The Notes have
not been nor will they be qualified for sale to the public by
prospectus under applicable Canadian securities laws and, accordingly,
any offer and sale of the Notes in Canada was made on a basis which is
exempt from the prospectus requirements of Canadian securities laws.
None of the Notes were offered to undetermined Colombian residents or
to more than 100 determined Colombian residents.
Pacific Rubiales, a Canadian company and producer of natural gas and
crude oil, owns 100% of Meta Petroleum Corp., which operates the
Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and
100% of Pacific Stratus Energy Colombia Corp., which operates the La
Creciente natural gas field in the northwestern area of Colombia.
Pacific Rubiales has also previously acquired 100% of Petrominerales
Ltd, which owns light and heavy oil assets in Colombia and oil and gas
assets in Peru, 100% of PetroMagdalena Energy Corp., which owns light
oil assets in Colombia, and 100% of C&C Energia Ltd., which owns light
oil assets in the Llanos Basin. In addition, the Company has a
diversified portfolio of assets beyond Colombia, which includes
producing and exploration assets in Peru, Guatemala, Brazil, Guyana,
Belize and Papua New Guinea.
The Company's common shares trade on the Toronto Stock Exchange and La
Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on
Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker
symbols PRE, PREC, and PREB, respectively.
Advisories
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements,
other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements regarding estimates and/or assumptions in
respect of production, revenue, cash flow and costs, reserve and
resource estimates, potential resources and reserves and the Company's
exploration and development plans and objectives) are forward-looking
statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently
available to the Company. Forward-looking statements are subject to a
number of risks and uncertainties that may cause the actual results of
the Company to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that they
will have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or events to differ materially
from current expectations include, among other things: uncertainty of
estimates of capital and operating costs, production estimates and
estimated economic return; the possibility that actual circumstances
will differ from the estimates and assumptions; failure to establish
estimated resources or reserves; fluctuations in petroleum prices and
currency exchange rates; inflation; changes in equity markets;
political developments in Colombia, Peru, Guatemala, Brazil, Papua New
Guinea, Belize or Guyana; changes to regulations affecting the
Company's activities; uncertainties relating to the availability and
costs of financing needed in the future; the uncertainties involved in
interpreting drilling results and other geological data; the impact of
environmental, aboriginal or other claims and the delays such claims
may cause in the expected development plans of the Company and the
other risks disclosed under the heading "Risk Factors" and elsewhere in
the Company's annual information form dated March 14, 2014 filed on
SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws,
the company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company believes
that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.
In addition, reported production levels may not be reflective of
sustainable production rates and future production rates may differ
materially from the production rates reflected in this press release
due to, among other factors, difficulties or interruptions encountered
during the production of hydrocarbons.
Translation
This news release was prepared in the English language and subsequently
translated into Spanish and Portuguese. In the case of any differences
between the English version and its translated counterparts, the
English document should be treated as the governing version.
SOURCE Pacific Rubiales Energy Corp.
<p> </p> <p> Christopher (Chris) LeGallais<br/> Corporate Vice President, Investor Relations<br/> +1 (647) 295-3700 </p> <p> Frederick Kozak<br/> Vice President, Investor Relations<br/> +1 (403) 606-3165 </p> <p> Roberto Puente<br/> Sr. Manager, Investor Relations<br/> +57 (1) 511-2298 </p> <p> Kate Stark<br/> Manager, Investor Relations<br/> +1 (416) 362-7735 </p> <p> <b>MEDIA CONTACT: </b> </p> <p> Peter Volk<br/> Vice President Communications, North America<br/> +1 (416) 362-7735 </p>