05:35 PM EDT, 07/29/2024 (MT Newswires) -- Athabasca Oil ( ATHOF ) on Monday it entered into an underwriting agreement raise $200 million in a private placement of senior unsecured notes due 2029.

The notes will bear interest at 6.75% per annum, with a closing of the offering on or about Aug. 9

Athabasca intends to use the net proceeds of the offering and cash on hand to redeem its US$157 million aggregate principal amount of 9.75% senior secured second lien notes due 2026.

Athabasca said it will conditionally redeem its 2026 Notes at par plus applicable premium and accrued and unpaid interest to, but excluding, the redemption date, to be completed on or about Aug. 9, 2024.