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Saturn Oil & Gas Inc
Symbol C : SOIL
Shares Issued 175,114,329
Close 2018-09-13 C$ 0.235
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Saturn Oil arranges $20M (U.S.) note facility

2018-09-14 13:49 ET - News Release

Mr. John Jeffrey reports


Saturn Oil & Gas Inc. has entered into a $20-million (U.S.) senior secured revolving note facility with Prudential Capital Energy Partners, the middle-market energy mezzanine fund business sponsored by Prudential Capital Group. Under the terms of the notes, Saturn has elected and qualified for an initial issuance of notes equal to approximately $4.6-million (U.S.). The remaining balance of notes issuable under the facility is subject to Saturn's satisfaction of applicable terms and conditions thereunder.

The notes offer a combined average coupon rate of approximately 15 per cent per year, payable monthly in arrears, and will mature on Sept. 14, 2022. Saturn may, at its option, elect to satisfy up to 2 per cent of the coupon interest of the notes by way of issuance PIK notes, which notes shall be substantially similar to the notes in all material respects.

The company has also agreed to issue Prudential Capital warrants to purchase 30,505,122 common shares of the company. The warrants are exercisable at a price per common share of 23.5 cents, which is equivalent to the closing price of the company's common shares on the TSX Venture Exchange on Sept. 13, 2018.

Saturn intends to use the majority of the net proceeds from the issuance of the notes to rapidly expand its development of its Viking light oil and Success heavy oil assets in west-central Saskatchewan. In addition, a portion of the net proceeds of the initial note issuance will be used to retire certain of the company's existing and higher interest debt.

Prudential Capital Group is the $81.4-billion private capital arm of PGIM, the $1-trillion global investment management businesses of Prudential Financial Inc.

John Jeffrey, chief executive officer of Saturn, commented: "We would like to thank Prudential, our new lending partner, for their commitment and support. This financing provides us the instrument to aggressively develop our light and heavy oil assets while continuing to strengthen our asset base."

About Saturn Oil & Gas Inc.

Saturn Oil & Gas is a public energy company focused on the acquisition and development of undervalued, low-risk assets. Saturn Oil & Gas is driven to build a strong portfolio of cash flowing assets with strategic land positions. Derisked assets and calculated execution will allow Saturn to achieve growth in reserves and production through retained earnings. Saturn's portfolio will become its key to growth and provide long-term stability to shareholders.

We seek Safe Harbor.

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