Suncor Energy announces $1 billion medium term note offering

Rhea-AI Summary

Suncor Energy (TSX: SU, NYSE: SU) priced a $1.0 billion offering of senior unsecured medium term notes on November 6, 2025, split into two tranches of $500 million each.

The Series 11 notes mature on November 14, 2027 with a 2.95% coupon and the Series 12 notes mature on November 14, 2030 with a 3.55% coupon. The offering is expected to close on November 14, 2025 and proceeds are intended to be used to repay existing debt. The notes are being sold under Suncor's June 4, 2024 base shelf prospectus through a dealer syndicate led by TD Securities, CIBC Capital Markets, RBC Capital Markets, and Scotia Capital.

Positive

• $1.0 billion in senior unsecured notes priced
• Two tranches of $500M each
• Series 11 maturity Nov 14, 2027 at 2.95%
• Series 12 maturity Nov 14, 2030 at 3.55%
• Proceeds designated to repay existing debt
• Deal led by major Canadian dealers: TD, CIBC, RBC, Scotia

Negative

• Notes are senior unsecured with no collateral
• Fixed coupons create ongoing interest expense of 2.95%/3.55%
• Closing subject to customary conditions (not guaranteed)

Insights

Credit Strategist

Suncor priced a $1 billion senior unsecured note split across 2027 and 2030 maturities to refinance existing debt.

The company issued Suncor Energy Series 11 and Series 12 medium‑term notes totaling 1,000,000,000 to be used to repay existing debt, with coupons of 2.95% (due November 14, 2027) and 3.55% (due November 14, 2030), respectively. This is a straightforward liability management action that preserves liquidity and extends nominal maturities under the firm’s shelf prospectus.

Key dependencies and risks include successful closing on November 14, 2025 and customary closing conditions; because the Notes are senior unsecured, repayment priority remains behind any secured creditors. Monitor actual use of net proceeds against the stated intent to repay debt and any changes in covenant or liquidity disclosures in subsequent filings.

Watch the closing on November 14, 2025, follow-up disclosure showing which specific liabilities were repaid, and next periodic filings for cash flow and maturity schedule updates over the next 12 months.

All financial figures are in Canadian dollars.

Calgary, Alberta--(Newsfile Corp. - November 6, 2025) - Suncor Energy (TSX: SU) (NYSE: SU) announced today that it has priced an offering of $1 billion in aggregate principal amount of senior unsecured notes. The offering will be comprised of two tranches, consisting of $500 million principal amount of Series 11 Medium Term Notes due on November 14, 2027 having a coupon of 2.95% and $500 million principal amount of Series 12 Medium Term Notes due on November 14, 2030 having a coupon of 3.55%, (together, the "Notes"). The offering is expected to close on November 14, 2025, subject to customary closing conditions.

Suncor intends to use the net proceeds from the sale of the Notes to repay existing debt.

The Notes are being offered through a syndicate of dealers led by TD Securities, CIBC Capital Markets, RBC Capital Markets, and Scotia Capital under Suncor's short form base shelf prospectus dated June 4, 2024 and related pricing supplements dated November 6, 2025.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes in any jurisdiction. The Notes have not been approved or disapproved by any regulatory authority. The 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 state securities laws, and may not be offered or sold within the United States unless an exemption from the registration requirements of the U.S. Securities Act is available.

Legal Advisory – Forward-Looking Statements

This news release contains certain forward-looking information and forward-looking statements (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements in this news release include Suncor's expectations regarding the offering of Notes, including the expected closing date of the offering and the intended use of the net proceeds therefrom. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor's actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them.

Suncor's Management's Discussion and Analysis for the third quarter of 2025 dated November 4, 2025, its Annual Information Form, Annual Report to Shareholders and Form 40-F, each dated February 26, 2025, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available without charge from Suncor at 150 6th Avenue S.W., Calgary, Alberta T2P 3E3; by e-mail request to invest@suncor.com; or by referring to suncor.com/FinancialReports or to the company's profile on SEDAR+ at sedarplus.ca or EDGAR at sec.gov. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Suncor Energy is Canada's leading integrated energy company. Suncor's operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the U.S.; and the company's Petro-Canada^TM retail and wholesale distribution networks (including Canada's Electric Highway^TM, a coast-to-coast network of fast-charging EV stations). Suncor is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. Suncor also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

For more information about Suncor, visit our website at suncor.com.

Media inquiries:
(833) 296-4570
media@suncor.com

Investor inquiries:
invest@suncor.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273521

FAQ

What did Suncor (SU) announce on November 6, 2025 about debt financing?

Suncor priced a $1.0 billion offering of senior unsecured medium term notes in two $500M tranches.

When do Suncor's Series 11 and Series 12 notes mature and what are the coupons?

Series 11 matures Nov 14, 2027 at 2.95%; Series 12 matures Nov 14, 2030 at 3.55%.

How will Suncor (SU) use the proceeds from the $1.0B note offering?

Suncor intends to use net proceeds to repay existing debt.

When is the Suncor note offering expected to close and under what prospectus?

The offering is expected to close on Nov 14, 2025 under Suncor's June 4, 2024 base shelf prospectus and related pricing supplements dated Nov 6, 2025.

Are Suncor's new notes registered for sale in the United States?

No; the notes are not registered under the U.S. Securities Act and cannot be offered in the U.S. absent an exemption.