CALGARY, ALBERTA--(Marketwire - July 27, 2009) - Nexen Inc. today priced and agreed to issue US$1.0 billion of senior notes, consisting of US$300 million principal amount of 6.20% senior notes due July 30, 2019 and US$700 million principal amount of 7.50% senior notes due July 30, 2039. The 6.20% senior notes were sold at a price of 99.801% per note to yield 6.227% to maturity. The 7.50% senior notes were sold at a price of 99.445% per note to yield 7.547% to maturity.
The net proceeds from the offering of the senior notes will be used for general corporate purposes, including the repayment of outstanding debt under our revolving bank credit facility and the funding of our capital expenditure program announced in December 2008. Any funds that are not immediately required for such purposes will be invested in short-term marketable securities. The notes will be unsecured and rank equally with Nexen's other senior unsecured debt. The underwriting syndicate is lead managed by Banc of America Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.
The notes will be issued under Nexen's shelf prospectus dated June 5, 2009.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities 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 state or other jurisdiction. A copy of the prospectus supplement relating to these securities may be obtained from: Nexen Inc. 801 - 7th Ave S.W., Calgary, Alberta, Canada T2P 3P7.
Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We are uniquely positioned for growth in the North Sea, Western Canada (including the Athabasca oil sands of Alberta and unconventional gas resource plays such as shale gas and coalbed methane), deep-water Gulf of Mexico, offshore West Africa and the Middle East. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity, governance and environmental protection.
Forward-Looking Statements
Certain statements in this report constitute "forward-looking statements" (within the meaning of the United States Private Securities Litigation Reform Act of 1995) or "forward-looking information" (within the meaning of applicable Canadian securities legislation).
