Suncor Energy announces pricing of US$1.0 billion notes offering

CALGARY, Alberta – Suncor announced today that it has priced an offering of US$450 million in aggregate principal amount of senior unsecured notes due on May 15, 2023 (the “2023 Notes”) and US$550 million in aggregate principal amount of senior unsecured notes due on May 15, 2025 (the “2025 Notes” and, together with the “2023 Notes”, the “Notes”). The 2023 Notes will have a coupon of 2.800% and the 2025 Notes will have a coupon of 3.100%. The offering is expected to close on May 13, 2020, subject to customary closing conditions.

Suncor intends to use the net proceeds from the sale of the Notes to repay short-term indebtedness and for general corporate purposes. Pending any such use of the net proceeds, Suncor will invest the net proceeds in bank deposits and short-term marketable securities. Suncor remains focused on maintaining the financial health and resiliency of the company. With the issuance of the Notes, Suncor maintains flexibility to allocate capital to debt reduction over the next five years.

The offering is being made pursuant to an effective shelf registration statement in the United States.  RBC Capital Markets and J.P. Morgan are acting as joint book-running managers for the offering.

A copy of the prospectus supplement and the accompanying prospectus for the offering may be obtained by contacting RBC Capital Markets by telephone at 1-866-375-6829 (toll free); or J.P. Morgan by telephone collect at 1-212-834-4533.

Under the terms of the offering, the underwriters have agreed not to offer or sell any Notes in Canada or to any resident of Canada.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities, in Canada, or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.