/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./
CALGARY, AB, Jan. 25, 2021 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX: ERF) (NYSE:
ERF) is pleased to announce that it has entered into a bought deal
financing with a syndicate of underwriters (the
"Underwriters") led by RBC Capital Markets and BMO Capital
Markets. Enerplus will issue 28,750,000 common shares
("Common Shares") at a price of $4.00 per Common Share for gross proceeds of
approximately $115 million (the "Offering").
The underwriters will have an option to purchase up to an
additional 15% of the Common Shares issued under the Offering at a
price of $4.00 per Common Share to
cover over-allotments, exercisable in whole or in part at any time
until 30 days after the closing. The Offering will be completed by
way of a prospectus supplement to Enerplus' final short form base
shelf prospectus to be filed in all of the provinces and
territories of Canada, and may
include shares issued on a private placement basis to qualified
institutional buyers in the United
States pursuant to exemptions from the registration
requirements of the U.S. Securities Act of 1933, as amended, (the
"U.S. Securities Act").
The Offering is subject to customary conditions and is expected
to close on or about February 3,
2021. Closing of the Offering is not conditional upon
completion of the Company's proposed acquisition of Bruin E&P
HoldCo, LLC for US$465 million (the
"Acquisition"), as separately announced today.
The net proceeds of the Offering (including any net proceeds
received in connection with the over-allotment option), together
with US$400 million to be drawn on a
new three-year term loan obtained by Enerplus in connection with
the Acquisition, are intended to be used to finance the purchase
price for the Acquisition, and to fund capital expenditures on the
acquired properties and other expenses in connection with the
Acquisition. If, however, the Acquisition is not completed, the net
proceeds from the Offering will be used to partially fund capital
expenditures, as well as the repayment of near-term maturities on
the Company's senior notes and for other general corporate
purposes.
The securities offered have not been, and will not be,
registered under the U.S. Securities Act or any U.S. state
securities laws and may not be offered or sold in the United States absent registration or an
available exemption from the registration requirement of the U.S.
Securities Act and applicable U.S. state securities laws. This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities, in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
ABOUT ENERPLUS
Enerplus is an independent North American oil and gas
exploration and production company focused on creating long-term
value for its shareholders through a disciplined, returns-based
capital allocation strategy and a commitment to safe, responsible
operations.
CURRENCY
All amounts in this news release are stated in Canadian
dollars unless otherwise specified.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release contains certain forward-looking
information and statements ("forward-looking information") within
the meaning of applicable securities laws. The use of any of the
words "expect", "anticipate", "continue", "estimate", "guidance",
"ongoing", "may", "will", "project", "plans", "budget", "strategy"
and similar expressions are intended to identify forward-looking
information. In particular, this news release contains
forward-looking information pertaining to the timing and expected
closing of the Offering and the proposed acquisition by Enerplus of
Bruin E&P HoldCo, LLC.
The forward-looking information contained in this news
release reflects certain expectations and assumptions of Enerplus
including, without limitation, that all of the necessary conditions
to closing of the Offering or the acquisition will occur in the
timeframe contemplated, or at all. Enerplus believes the
expectations and assumptions reflected in the forward-looking
information are reasonable but no assurance can be given that these
expectations and assumptions will prove to be correct. The
forward-looking information included in this news release is not a
guarantee of future performance and should not be unduly relied
upon. Such information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information, including that unforeseen events
result in the conditions to closing of the Offering or the
acquisition not to occur. Enerplus assumes no obligation to update
any forward-looking statements, unless otherwise required by
law.
SOURCE Enerplus Corporation