Harvest Operations Corp. Announces U.S. $397.5 Million 4.2% Senior Note Offering and New Term Loan

CALGARY, Alberta , April 24, 2018 (GLOBE NEWSWIRE) -- Harvest Operations Corp. (“Harvest” or the “Company”) is pleased to announce that it has agreed to issue and sell U.S.$397.5 million senior unsecured notes due 2023 with a coupon rate of 4.2% (the “Notes”).  The Notes have been rated Aa2 and AA by Moody’s Investors Service and S&P Global Ratings, respectively.

The Notes will be unconditionally and irrevocably guaranteed by Harvest’s parent company Korea National Oil Corporation (“KNOC”).  Closing of the offering is expected on May 1, 2018.

SMBC Nikko Securities America, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint bookrunners and lead managers for the offering.

Application will be made to the Singapore Exchange Securities Trading Limited (the “Singapore Exchange”) for the listing and quotation of the Notes on the Singapore Exchange.

In addition, Harvest has also received a commitment from an affiliate of SMBC Nikko Securities America, Inc. to provide a five-year term loan facility in an aggregate principal amount of up to CAD$300 million (the “New Term Loan”). Harvest currently expects the New Term Loan to close on or about May 11, 2018.

Harvest intends to use the net proceeds of the Notes offering and New Term Loan to repay in full Harvest’s outstanding approximately U.S.$630 million aggregate principal amount of 2 ^1/8% Senior Notes due May 14, 2018. 

The Notes have not been registered under the Securities Act of 1933, as amended (the “Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Act. The offering will be made solely by means of a private placement either to qualified institutional buyers pursuant to Rule 144A under the Act, or to certain persons outside of the United States pursuant to Regulation S under the Act.  This press release is neither an offer to sell nor a solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offering, solicitation or sale would be unlawful.