Cenovus Energy Inc T.CVE

CVE INCREASES Notes Tender Offers To USD 1 BILLION

[ztransforms173]

- from the ORIGINAL USD 750 MILLION

Cenovus Energy Inc. has released the total consideration payable in connection with its previously announced tender offers to purchase for cash: (i) up to $500-million aggregate purchase price, excluding accrued and unpaid interest (the pool 1 maximum amount), of its 5.250 per cent notes due 2037, 4.450 per cent notes due 2042, 5.200 per cent notes due 2043, 4.400 per cent notes due 2029, 5.400 per cent notes due 2047 and 4.250 per cent notes due 2027; and (ii) up to $500-million aggregate purchase price, excluding accrued and unpaid interest (the pool 2 maximum amount), of its 6.800 per cent notes due 2037 and 6.750 per cent notes due 2039, subject to prioritized acceptance levels listed in the attached table and the terms and conditions of the tender offers.

https://www.stockwatch.com/News/Image/CVE.2023.09.19.01.png

Source:

https://www.stockwatch.com/News/Item/Z-C!CVE-3457988/C/CVE

- which means under the 50/50% RETURN TO SHAREHOLDERS and DEBT REDUCTION FRAMEWORK, USD 1 billion is DUE TO SHAREHOLDERS in SHARE BUYBACKS and DIVIDENDS (including warrant buybacks)

* I gather that this INCLUDES the PROJECTED C $ 711 million WARRANT REPURCHASE TRANSACTION due on January 5, 2024

z173

[meritmat]

So that drops us from 6.3 to 5.3 debt from last qt.  Darn near 5 by the end of third qt.  If oil stays around 90ish no reason they dont hit 4 buy end of 4th quarter

[JohnSP]

Good point and would be nice, as I'd like to see more direct cashflow to shareholders (like me!) via increased dividend and share buybacks, vs indirect returns of net debt reduction. But it's all good.

[meritmat]

  yup kinda been a lost year since we all figured they were goi g to hit that 4B at the end of last year before the surprise 2B tax bill.    

[JohnSP]

Yep it was all tee'd up then rug pull with surprise tax bill & CEO Alex Pourbaix was dethroned (haven't heard from him since), then most of warrants buyout, and here we back are 1 year later (hopefully) at CAD4 bln net debt by end of this year. Both tax bill and warrants buyout are legit, but neither was advertised, instead it was convert to 100% direct shareholder returns when net