Crew Energy Inc., a growth-oriented, liquids-rich natural gas producer operating in the world-class Montney play in northeast British Columbia ("NE BC"), is pleased to announce today the issuance of a notice of redemption for $172 million principal amount of 6.5% senior unsecured notes (the "Notes") due March 2024 (the "Redeemed Notes"), which represent all the Company's remaining Notes outstanding.
As set forth in the notice of redemption, the redemption price is CDN $1,000.00 for each $1,000.00 of principal amount redeemed, plus accrued and unpaid interest up to, but not including the redemption date of April 28, 2023 (the "Redemption Date"). The Redeemed Notes will be settled in full on the Redemption Date using available cash on hand and borrowings under the Company's existing credit facility.
The early redemption of the Notes marks the conclusion of a very successful plan that Crew initiated in 2020 to increase production, reduce per unit costs to improve netbacks and strengthen the Company's balance sheet. With zero currently drawn on our $200 million credit facility, Crew is able to redeem the Notes while continuing to execute an accretive capital investment program through 2023, designed to maintain conservative leverage metrics while targeting positive investment returns in the current environment. We are pleased with this achievement, which positions Crew to continue developing our significant Montney resource base for the benefit of our stakeholders.
