Southern Pacific Resource Corp. announced that it intends to issue, on a private placement basis, up to CAD 300 million in aggregate principal amount of senior secured second lien notes, if terms and conditions appear favorable. Southern Pacific may issue the notes in connection with this private placement offering or in future offerings from time to time.

In conjunction with the notes offering, the company contemplates that it may enter into a senior secured first lien revolving credit facility with a syndicate of financial institutions if terms and conditions appear favorable. Southern Pacific intends to use the net proceeds from the private placement to retire its debt obligations under its existing USD 272.2 million second lien term loan facility (including a prepayment penalty of USD 2.7 million) and for general corporate purposes.