Crescent Point Announces CDN$500 Million Bought Deal Offering of Common Shares

Grand News Network | November 6, 2023

CALGARY, Alberta, Nov. 06, 2023 (GLOBE NEWSWIRE) -- Crescent Point Energy Corp. ("Crescent Point" or the "Company") (NYSE:CPG) today announced that it has entered into an agreement (the "Agreement") with a syndicate of underwriters co-led by BMO Capital Markets and RBC Capital Markets (collectively the "Underwriters") under which the Underwriters have agreed to purchase, on a bought deal basis 48,550,000 Crescent Point common shares ("Common Shares") at $10.30 per Common Share for aggregate gross proceeds of approximately CDN$500 million (the "Offering").

Crescent Point intends to use the net proceeds from the Offering to partially fund the cash portion of the consideration payable in connection with the acquisition of Hammerhead Energy Inc., an oil and liquids-rich Alberta Montney producer, which was announced today in a separate news release issued by Crescent Point (the "Transaction"). Total consideration for the Transaction is approximately CDN$2.55 billion.

Closing of the Offering is expected to occur on or about November 10, 2023. Crescent Point has also granted the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase, on the same terms and conditions of the Offering, up to an additional 15 percent of the Common Shares issued in connection with the Offering. The Over-Allotment Option is exercisable, in whole or in part, by the Underwriters at any time until and including 30 days after closing of the Offering. The maximum gross proceeds raised under the Offering will be approximately CDN$575 million, in the event the Over-Allotment Option is fully exercised.

The closing of the Offering is not conditional upon the completion of the Transaction. If the Transaction is not completed, Crescent Point intends to use the net proceeds from the Offering to reduce existing indebtedness, finance future growth opportunities including acquisitions, finance its capital expenditures or for other general corporate purposes.

This press 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 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.

The Common Shares will be offered to the public through the Underwriters and their affiliates by way of a prospectus supplement (the "Prospectus Supplement") to Crescent Point's short form base shelf prospectus dated November 3, 2023 (the "Prospectus") filed with the securities regulatory authorities in each of ...

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