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

Insights

Capital Markets Strategist

Obsidian replaced higher‑coupon near‑term debt with longer‑dated, lower‑coupon unsecured notes, improving near‑term liquidity and extending maturity.

Obsidian Energy issued $175.0 million of five‑year senior unsecured notes at 8.125% due December 3, 2030 and used part of the proceeds to redeem $80.8 million of 11.95% notes due July 27, 2027. The offering also reduced borrowings on the syndicated credit facility, leaving approximately $8 million outstanding, which lowers near‑term cash interest and postpones the next major maturity.

The primary dependencies are the company’s ability to service the new 8.125% coupons and maintain access to capital markets under the terms stated; the notes are unsecured and rank pari passu with other senior unsecured debt. Risks include refinancing needs at the new maturity, covenants on the syndicated facility (if any), and that the notes were privately placed and are not publicly registered, which limits liquidity for holders.

Watch for actual cash interest outlays each quarter, any covenant waivers or amendments to the $235 million syndicated facility, and the company’s free‑cash‑flow statements over the next 12–24 months to confirm reduced near‑term funding pressure; the key milestone is the December 3, 2030 maturity.

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.