Sunshine Oilsands (TSX:SUO, Stock Forum), a Calgary-based firm engaged in the evaluation and development of oil properties in the Athabasca oil sands region, announced today that the company intended to offer US$325 million aggregate principal amount of senior secured notes of the company maturing in 2019.
According to the news release, “The Corporation intends to use the proceeds from the Offering to: (i) fund expenditures associated with the anticipated final construction and development necessary to complete phases one and two at the Corporation's West Ells steam assisted gravity drainage ("SAGD") project and general corporate purposes, (ii) prefund 18 months of cash interest in an escrow account and (iii) pay fees and expenses associated with the Offering.”
The release went on to note, “No binding agreement in relation to the Offering has been entered into as at the date of this announcement. The Offering may nor may not materialise subject to, among other things, market conditions and investors' interest. Investors and shareholders of the Corporation are reminded to exercise caution when dealing in the securities of the Corporation.”