Pengrowth Reduces Indebtedness by CDN $530 Million Following Prepayment of US $300 Million of Notes and Redemption of Convertible Debentures
CALGARY, ALBERTA–(April 3, 2017) – Pengrowth Energy Corporation (TSX:PGF)(NYSE:PGH) is pleased to announce that it has reduced its indebtedness by Cdn $530 million or 31 percent from December 31, 2016 through the previously announced debt reduction initiatives.
The Company has successfully prepaid US $300 million of the US $400 million 6.35% senior notes due July 26, 2017, and redeemed with cash on March 31, 2017, Cdn $126.6 million of the remaining outstanding convertible debentures on maturity. The convertible debentures no longer trade on the Toronto Stock Exchange and debentureholders should receive the cash proceeds in their accounts shortly.
Following the above payments Pengrowth’s debt as at March 31, 2017, falls to Cdn $1.15 billion. The recently announced Swan Hills and Bernadet dispositions are expected to generate approximately Cdn $272 million of additional cash proceeds in the second quarter, which the Company expects to use for further debt reductions. Upon closing of these dispositions, the Company’s net debt will have fallen approximately 48 percent from December 31, 2016.
Derek Evans, Chief Executive Officer of Pengrowth stated, “We are very pleased to have been able to reduce our net indebtedness by approximately 48 percent since year end 2016. These moves have served to substantially improve our balance sheet, leaving us with no term debt due before August 21, 2018. We continue to look at potential dispositions to address the remaining maturities, while also continuing to work to amend the covenants in our remaining term notes to reflect the current environment.”
Pengrowth Energy Corporation is a Canadian intermediate energy company focused on the sustainable development and production of oil and natural gas in Western Canada. The Company is headquartered in Calgary, Alberta, Canada and has been operating in the Western basin for over 28 years. The Company’s shares trade on both the Toronto Stock Exchange under the symbol “PGF” and on the New York Stock Exchange under the symbol “PGH”.
PENGROWTH ENERGY CORPORATION
Derek Evans, President and Chief Executive Officer
Manager, Investor Relations
(403) 233-0224 or Toll free 1-855-336-8814