Canada’s largest energy firm,Suncor Energy Inc. (NYSE:SU) , recently announced plans to issue senior unsecured Series 5 Medium Term Notes for an aggregate amount of $1.0 billion.
The company intends to conduct the issuance in two tranches. The first tranche will comprise of senior unsecured Series 5 Medium Term Notes worth $700 million that are set to mature on Sep 14, 2026. These notes will have a coupon of 3.00% and will be priced at $99.751 per note to yield 3.029%.
The second tranche will comprise of senior unsecured Series 5 Medium Term Notes worth $300 million, which are slated to mature on Sep 13, 2046. These notes will have a coupon of 4.34% and will be priced at $99.900 per note to yield 4.346%.
The net proceeds from the offering will likely be utilized to repay existing short-term debt. The offering will be closed on Sep 13, 2016, upon compliance with customary closing conditions.
SUNCOR ENERGY Price
Calgary, Alberta-based Suncor’s operations include oil sands development and upgrade, conventional and offshore crude oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand.
The company is one of the best positioned companies in the energy space given its access to abundant resources, its rich operating experience and its technical know-how. However, the company’s earnings and cash flows have been adversely affected by the weakness in oil prices.
As a result, Suncor currently carries a Zacks Rank #3 (Hold), which implies that it will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include NGL Energy Partners LP (NYSE:NGL) , Matador Resources Company (NYSE:MTDR) and Enviva Partners, LP (NYSE:EVA) . All these stocks sport a Zacks Rank #1 (Strong Buy).You can seethe complete list of today’s Zacks #1 Rank stocks here.
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SUNCOR ENERGY (SU): Free Stock Analysis Report
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ENVIVA PARTNERS (EVA): Free Stock Analysis Report
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