Obsidian Energy Announces Closing of $175 Million, 5-Year Senior Unsecured Notes Due in 2030 and Redemption of Existing $80.8 Million Senior Unsecured Notes Due in 2027

Rhea-AI Summary

Obsidian Energy (TSX: OBE; NYSE American: OBE) closed a private placement of $175.0 million aggregate principal amount of 8.125% five-year senior unsecured notes due December 3, 2030 (the 2030 Notes).

The company used part of the proceeds to redeem the remaining $80.8 million of 11.95% senior unsecured notes due July 27, 2027, and the balance to pay down indebtedness under its syndicated credit facility and related transaction expenses. The $235 million syndicated credit facility shows approximately $8 million outstanding at closing. BMO Capital Markets and RBC Capital Markets were bookrunners. The 2030 Notes were issued at par and offered under exemptions from prospectus and registration requirements in Canada and the United States.

Positive

• Proceeds of $175.0M raised via five-year notes
• Redeemed $80.8M of higher-coupon 11.95% 2027 notes
• Reduced syndicated facility usage to approximately $8M outstanding

Negative

• New 8.125% fixed-rate notes create multi-year interest obligations
• 2030 Notes are senior unsecured, ranking equal with other unsecured debt
• 2030 Notes are not qualified for public distribution, limiting liquidity

News Market Reaction – OBE

-0.65%

1 alert

-0.65% News Effect

On the day this news was published, OBE declined 0.65%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

New notes issued: $175.0 million Coupon on 2030 notes: 8.125% Redeemed notes balance: $80.8 million +3 more

6 metrics

New notes issued $175.0 million Aggregate principal of 8.125% senior unsecured notes due Dec 3, 2030

Coupon on 2030 notes 8.125% Interest rate on new five-year senior unsecured notes

Redeemed notes balance $80.8 million Outstanding 11.95% senior unsecured notes due Jul 27, 2027 fully redeemed

Old coupon rate 11.95% Interest rate on redeemed 2027 senior unsecured notes

Syndicated credit facility $235 million Total size of OBE’s syndicated credit facility

Credit facility drawn Approximately $8 million Amount outstanding under credit facility at closing of 2030 notes

Market Reality Check

Price: $7.92 Vol: Volume 218,894 is 0.67x t...

low vol

$7.92 Last Close

Volume Volume 218,894 is 0.67x the 20-day average of 327,060, indicating subdued pre-news trading interest. low

Technical Price at $6.01 is trading above the 200-day MA of $5.62, reflecting an established uptrend into this debt refinancing.

Peers on Argus

While OBE was up 1.48%, close peers showed mixed moves: EGY up 1.15%, but SD, TB...

2 Up

While OBE was up 1.48%, close peers showed mixed moves: EGY up 1.15%, but SD, TBN, GFR, and GPRK down between 0.41% and 1.7%. Momentum scanner names TXO and VET were up 4.46% and 4.77% without news, suggesting broader stock-specific and trader-driven activity rather than a coordinated sector move around OBE’s debt transaction.

Historical Context

5 past events · Latest: Dec 03 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Debt refinancing	Positive	-0.7%	Closed $175M 2030 notes and redeemed remaining $80.8M 2027 notes.
Oct 30	Quarterly earnings	Positive	-5.2%	Q3 2025 results with solid production, FFO and net income metrics.
Sep 08	Capital program update	Positive	+0.0%	Operational update with record Peace River output and lower net debt guide.
Sep 02	Partial note redemption	Positive	+0.8%	Completed $30M partial redemption of high-coupon senior unsecured notes.
Aug 18	Redemption notice	Positive	-1.9%	Announced plan to redeem $30M of 11.95% senior unsecured notes.

Pattern Detected

Recent history shows several positive balance sheet and operational updates followed by flat or negative next-day moves, indicating a tendency for the stock to diverge from ostensibly constructive news.

Recent Company History

Over the last few months, Obsidian Energy has repeatedly focused on strengthening its balance sheet and operations. On Aug 18 and Sep 2, the company announced and then completed a partial redemption totaling $30 million of 11.95% senior unsecured notes, reducing the outstanding to $80.8 million. A Sep 8 capital program update highlighted record Peace River production and lower year-end net debt guidance. Q3 2025 results on Oct 30 showed net income of $16.8 million and funds flow from operations of $49.7 million. Today’s news extends this de-leveraging trend via a larger, longer-dated note issue and full redemption of the remaining 2027 notes.

Market Pulse Summary

This announcement detailed a significant refinancing, with Obsidian Energy issuing $175.0 million of...

Analysis

This announcement detailed a significant refinancing, with Obsidian Energy issuing $175.0 million of 8.125% senior unsecured notes due 2030 and using proceeds to redeem the remaining $80.8 million of 11.95% notes due 2027 and reduce credit facility borrowings to about $8 million. In the months prior, the company had already redeemed portions of these high-coupon notes and reported solid Q3 2025 results. Investors may monitor future debt levels, interest costs, and capital allocation decisions.

Key Terms

senior unsecured notes, private placement, trust indenture, syndicated credit facility, +3 more

7 terms

senior unsecured notes financial

"aggregate principal amount of 8.125 percent five-year senior unsecured notes"

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

private placement financial

"closed the previously announced private placement offering (the "Offering") of $175.0 million"

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

trust indenture financial

"The 2030 Notes were issued at par under a trust indenture and are direct"

A trust indenture is a legal agreement between a company that borrows money and a special bank or trust company that makes sure the company follows its promises. It acts like a rulebook to protect lenders, ensuring the company pays back loans and follows safety rules. This helps investors feel more confident that their money is safe.

syndicated credit facility financial

"Our $235 million syndicated credit facility has approximately $8 million"

A syndicated credit facility is a large loan provided to a company by multiple lenders working together, rather than just one. It’s like a group of friends pooling their money to lend to someone, making it easier and safer for everyone involved. This arrangement helps companies access bigger amounts of money quickly when they need it.

bookrunners financial

"BMO Capital Markets and RBC Capital Markets acted as bookrunners for the Offering."

Bookrunners are financial institutions or banks that lead the process of organizing and managing the sale of new securities, such as stocks or bonds, to investors. They coordinate the offering, determine the initial price, and ensure that the securities are sold efficiently, much like a conductor directs an orchestra to deliver a smooth performance. Their role matters to investors because they help ensure the offering is successful and fairly priced.

prospectus regulatory

"pursuant to applicable exemptions from the prospectus and registration requirements"

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

registration requirements regulatory

"exemptions from the prospectus and registration requirements thereunder."

Registration requirements are the legal steps a company or security must complete with regulators before offering shares, bonds, or certain products to the public. They matter to investors because these rules force companies to disclose key facts—like financials, risks, and who’s in charge—so buyers can make informed choices, much like checking a permit and inspection report before buying a house to reduce surprise problems.

AI-generated analysis. Not financial advice.

Calgary, Alberta--(Newsfile Corp. - December 3, 2025) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") announces that it has successfully closed the previously announced private placement offering (the "Offering") of $175.0 million aggregate principal amount of 8.125 percent five-year senior unsecured notes due December 3, 2030 (the "2030 Notes"). The 2030 Notes were issued at par under a trust indenture and are direct senior unsecured obligations of Obsidian Energy, ranking equal with all other present and future senior unsecured indebtedness of the Company.

The Company used a portion of the proceeds from the Offering to redeem the balance of our outstanding $80.8 million, 11.95%, senior unsecured notes due July 27, 2027 (the "2027 Notes"), which was also completed today. The remaining proceeds were used to pay down indebtedness under our syndicated credit facility and to pay related transaction expenses. Our $235 million syndicated credit facility has approximately $8 million outstanding at closing.

BMO Capital Markets and RBC Capital Markets acted as bookrunners for the Offering. The 2030 Notes are not qualified for distribution to the public or registered under the securities laws of any province or territory of Canada or in the United States. They are only offered in the provinces of Canada and in the United States pursuant to applicable exemptions from the prospectus and registration requirements thereunder.

This release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. No securities regulatory authority has either approved or disapproved of the contents of this news release.

About Obsidian Energy

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets, primarily in the Peace River, Willesden Green and Viking areas in Alberta. The Company's business is to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin.

Obsidian Energy is headquartered in Calgary and listed on the Toronto Stock Exchange and NYSE American (TSX: OBE) (NYSE American: OBE). To learn more, visit Obsidian Energy's website.

ADDITIONAL READER ADVISORIES

CAUTIONARY STATEMENTS PURSUANT TO THE OFFERING

The 2030 Notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold except to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the U.S. Securities Act, or to persons outside the United States in compliance with Regulation S under the U.S. Securities Act. Any public offering of securities made in the United States would be made by means of a prospectus that would be obtainable from the Company and that would contain detailed information about the Company, its management and financial statements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the 2030 Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. The forward-looking statements and information are based on certain key expectations and assumptions made by Obsidian Energy. Although Obsidian Energy believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Obsidian Energy can give no assurance that they will prove to be correct. By its nature, such forward-looking statements and information are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned that the assumptions used in the preparation of such forward-looking statements and information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on such forward-looking statements and information. Obsidian Energy gives no assurance that any of the events anticipated will transpire or occur, or, if any of them do, what benefits Obsidian Energy will derive from them. The forward-looking statements and information contained in this news release are expressly qualified by this cautionary statement. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein. Readers should also carefully consider the matters discussed that could affect Obsidian Energy, or its operations or financial results in Obsidian Energy's Annual Information Form (see "Risk Factors" and "Forward-Looking Statements" therein) for the year ended December 31, 2024, which is available on the SEDAR+ website (www.sedarplus.ca), EDGAR website (www.sec.gov) or Obsidian Energy's website.

All figures are in Canadian dollars unless otherwise stated.

CONTACT

OBSIDIAN ENERGY

Suite 200, 207 - 9th Avenue SW, Calgary, Alberta T2P 1K3
Phone: 403-777-2500
Toll Free: 1-866-693-2707
Website: www.obsidianenergy.com;

Investor Relations:
Toll Free: 1-888-770-2633
E-mail: investor.relations@obsidianenergy.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276793

FAQ

What did Obsidian Energy (OBE) issue on December 3, 2025?

Obsidian issued $175.0 million of 8.125% five-year senior unsecured notes due Dec 3, 2030.

How did Obsidian Energy use the proceeds from the 2030 Notes?

Proceeds were used to redeem $80.8 million of 11.95% notes due Jul 27, 2027, pay down the syndicated credit facility, and cover transaction expenses.

What is the remaining balance of Obsidian's syndicated credit facility after the transaction?

The $235 million syndicated credit facility had approximately $8 million outstanding at closing.

Who acted as bookrunners for Obsidian Energy's offering (OBE)?

BMO Capital Markets and RBC Capital Markets acted as bookrunners.

Are the 2030 Notes registered for public distribution in the US and Canada?

No; the 2030 Notes are not qualified for public distribution and were offered under applicable exemptions in Canada and the United States.