Canadian Mining Journal


SHARES: Suncor to raise $2.5B through share offering

CALGARY – Suncor Energy has agreed to sell 71.5 million common shares at a price of $35.00 raising approximately $2.5 billion. Net proceeds of the bought deal will be used to acquire an additional 5% interest in the Syncrude joint venture and reduce certain outstanding debt.

The offering will be made through a syndicate led by TD Securities, CIBC Capital Markets and J.P. Morgan Securities Canada. The underwriters have been granted an over-allotment option to purchase an additional 10.7 million shares at the same price. If they exercise the over-allotment, the total gross amount will rise to about $2.9 billion.

Over the last nine months, Suncor has invested approximately $9 billion via acquisitions and related future development expenditures, resulting in increased, long life production capacity of approximately 164,000 bbl/d. Including this offering, these investments have been 60% funded by the issuance of equity and 40% by cash and debt, leaving balance sheet flexibility for potential future opportunistic growth transactions.

After the extensive forest fires that burned through northern Alberta in May, Suncor expects to have its oil sands plants and mines back up to normal levels of production by the end of the month. See also