Obsidian Energy closes $75 million add-on to 8.125% senior unsecured notes due 2030

Obsidian Energy closed a $75 million add-on private placement of its 8.125% senior unsecured notes due Dec. 3, 2030.

The notes were issued at 102.75% of face value, implying a 7.19% effective yield; gross proceeds totaled $77.9 million.

The company said net proceeds will be used to reduce borrowings under the syndicated credit facility, for general corporate purposes, and to pay transaction costs.

Following the add-on issuance, total notes outstanding increased to $250 million from $175 million.