CALGARY, May 25, 2016 /PRNewswire/ - (TSX:PMT) -
Perpetual Energy Inc. ("Perpetual", the "Corporation" or the
"Company") is pleased to announce the closing of the disposition of
its 30 percent partnership interest in Warwick Gas Storage LP ("WGS
LP") for $20 million. The transaction
included the disposition of Perpetual's share of WGS LP's
$8.3 million of debt net of working
capital held by the partnership. In addition, Perpetual received a
net dividend of $0.5 million at
closing, for effective total value of approximately $23 million.
Perpetual is also pleased to announce that it has swapped an
additional $62.5 million aggregate
principal amount of senior notes pursuant to the previously
announced securities swap proposal whereby Perpetual offered
to swap a portion of the Tourmaline Oil Corp. shares (the
"Tourmaline Shares") owned by Perpetual (the "Securities
Swap Proposal") on the basis of 21 Tourmaline Shares for each
$1,000 principal amount of the 8.75%
senior notes due March 15, 2018 (the
"2018 Senior Notes") and 20 Tourmaline Shares for each
$1,000 principal amount of the 8.75%
senior notes due July 23, 2019 (the
"2019 Senior Notes" and together with the 2018 Senior Notes,
the "Senior Notes"). The additional $62.5 million Senior Notes swapped include
$35.4 million of the 2018 Senior
Notes and $27.2 million of the 2019
Senior Notes for 1,286,006 Tourmaline Shares owned by
Perpetual.
In combination with $152.0 million
aggregate principal amount of Senior Notes previously swapped
pursuant to Securities Swap Proposal on April 27 and May 10,
2016, an aggregate of $214.4
million Senior Notes have been swapped for 4.402
million Tourmaline Shares owned by Perpetual. This includes
$114.1 million of the 2018 Senior
Notes and $100.3 million of the 2019
Senior Notes. All Senior Notes tendered to the Securities Swap
Proposal were swapped and subsequently cancelled.
Giving effect to the aggregate $214.4
million swap and cancellation of Senior Notes, the Company
estimates its total net debt, net of the market value of the
remaining Tourmaline Shares held is approximately $29.5 million, down close to 86 percent from
$203.6 million at year end 2015. The
current estimate of total net debt is comprised of: $60.6 million in face value Senior Notes
($36.1 million 2018 Senior Notes and
$24.5 million 2019 Senior Notes);
$21.3 million due November 16, 2016 as per the financing
arrangement secured by 1.0 million Tourmaline Shares; a margin loan
of $10.6 million secured by the
remaining 0.85 million Tourmaline Shares due April 2017; offset by estimated net working
capital of $5.0 million and by the
market value of the remaining 1.85 million Tourmaline Shares of
approximately $58.0 million (based on
a market price of $31.38 per
Tourmaline Share on May 25,
2016).
Perpetual remains focused on strengthening its balance sheet,
managing liquidity and restoring positive funds flow as top
priorities in the current depressed commodity price
environment.
Forward-Looking Statements
Certain information regarding Perpetual in this news release
including management's assessment of future plans and operations
may constitute forward-looking statements under applicable
securities laws. The forward-looking information includes, without
limitation, statements regarding the Corporation's plans to
strengthen its balance sheet, manage liquidity and restore positive
funds flow as its top priorities. Various assumptions were used in
drawing the conclusions or making the forecasts and projections
contained in the forward-looking information contained in this
press release, which assumptions are based on management analysis
of historical trends, experience, current conditions, and expected
future developments pertaining to Perpetual and the industry in
which it operates as well as certain assumptions regarding the
matters outlined above. Forward-looking information is based on
current expectations, estimates and projections that involve a
number of risks, which could cause actual results to vary and in
some instances to differ materially from those anticipated by
Perpetual and described in the forward looking information
contained in this press release. Undue reliance should not be
placed on forward-looking information, which is not a guarantee of
performance and is subject to a number of risks or uncertainties,
including without limitation those described under "Risk
Factors" in Perpetual's Annual Information Form and MD&A for
the year ended December 31, 2015 and
those included in other reports on file with Canadian securities
regulatory authorities which may be accessed through the SEDAR
website (www.sedar.com) and at Perpetual's website
(www.perpetualenergyinc.com). Readers are cautioned
that the foregoing list of risk factors is not exhaustive.
Forward-looking information is based on the estimates and opinions
of Perpetual's management at the time the information is released
and Perpetual disclaims any intent or obligation to update publicly
any such forward-looking information, whether as a result of new
information, future events or otherwise, other than as expressly
required by applicable securities laws.
Non-GAAP Measures
This news release contains financial measures that may not be
calculated in accordance with generally accepted accounting
principles in Canada ("GAAP"),
such as net debt. Readers are referred to the "Advisories" section
of the Company's management's discussion and analysis for the
quarter ended March 31, 2016
which is available under the Company's SEDAR profile at
www.sedar.com for a description of how this measure is
calculated.
About Perpetual
Perpetual Energy Inc. is a Canadian energy company with a
spectrum of resource-style opportunities spanning heavy oil,
natural gas liquids and bitumen along with a large base of shallow
gas assets. The Common Shares are listed on the Toronto Stock
Exchange under the symbol "PMT". Further information with respect
to Perpetual can be found at its website at
www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
SOURCE Perpetual Energy Inc.
