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News Apr 05, 2017

Shearman & Sterling Advises Underwriters in Cenovus Energy Inc.’s C$3 Billion Bought Deal Equity Offering

Shearman & Sterling represented RBC Dominion Securities Inc., J.P. Morgan Securities Canada Inc. and J.P. Morgan Securities LLC, as joint book-running managers, and TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., Barclays Capital Canada Inc., Merrill Lynch Canada Inc., Credit Suisse Securities (Canada), Inc., National Bank Financial Inc., Desjardins Securities Inc., Mizuho Securities USA Inc., MUFG Securities (Canada), Ltd., AltaCorp Capital Inc., GMP Securities L.P. and Peters & Co. Limited, as co-managers, in connection with a bought deal for 187,500,000 common shares of Cenovus Energy Inc. priced at C$16.00 per share for gross proceeds of approximately C$3 billion. 

Cenovus intends to use the net proceeds from the bought deal to finance a portion of the cash consideration payable in connection with its acquisition of ConocoPhillips’ 50% interest in the FCCL Partnership, the companies’ jointly owned oil sands venture operated by Cenovus, and a majority of ConocoPhillips’ Deep Basin conventional assets in Alberta and British Columbia.

Cenovus is a Canadian integrated oil company with oil sands projects in northern Alberta, natural gas and oil production in Alberta and Saskatchewan and 50 percent ownership in two U.S. refineries.

The Shearman & Sterling team partners Jason Lehner (Toronto/New York-Capital Markets) and Larry Crouch (Menlo Park-Tax); counsels Kevin Roggow (Toronto-Capital Markets), Jeffrey Salinger (New York-Environmental) and Jennifer Morton (New York-Financial Institutions Advisory & Financial Regulatory); associates Steven Blau (Toronto-Financial Institutions Advisory & Financial Regulatory), Heather Pals (Toronto-Capital Markets), Ryan Robski (Toronto-Capital Markets) and Emalie Sundale (Menlo Park-Tax); and international associate Fabio Pazzini (New York).