Gibson Energy Inc. says that its wholly-owned subsidiary, Gibson Energy ULC, has launched an initiative to refinance its existing senior secured credit facilities, currently consisting of a US$375 million revolving credit facility due June 2016 and a US$650 million term loan facility due June 2018.

Gibson is intending to enter into a new C$500 million senior secured revolving credit facility and to issue, on an exempt private placement basis, up to US/C$750 million aggregate principal amount of new senior unsecured notes (currency split to be determined), subject to market and other conditions.

Net proceeds from the new senior unsecured notes are expected to be used to repay all outstanding indebtedness under the existing term loan facility, with the remaining net proceeds to be used for general corporate purposes. The new secured revolving credit facility is expected to be undrawn (except for the continuation of outstanding letters of credit) upon the closing of this refinancing plan.

Tags: Gibson Energy Inc.