Oil producer Greenfire Resources Inc. is set to start trading on the New York Stock Exchange after closing a deal to combine with blank check company M3-Brigade Acquisition III Corp., according to a document reviewed by Bloomberg.
(Bloomberg) — Oil producer Greenfire Resources Inc. is set to start trading on the New York Stock Exchange after closing a deal to combine with blank check company M3-Brigade Acquisition III Corp., according to a document reviewed by Bloomberg.
Common shares of the Calgary-based producer of oil sands are expected to begin trading under the ticker GFR on Thursday, according to the document. The deal to combine Greenfire and the special purpose acquisition company was valued at $950 million when announced in December.
Greenfire has also refinanced some of its debt, issuing $300 million of new 12% senior secured notes to buy back debt maturing in 2025, according to the document. It also entered into a new C$50 million ($37.3 million) credit facility and placed $42 million of common shares in a private placement, according to people familiar with the matter, who declined to comment ahead of an official announcement.
A representative for Greenfire declined to comment. M-3 managing partner Mohsin Meghji said the firm aims to bring value to shareholders.
Greenfire plans to use 75% of free cash flow to repay the new notes at 105 cents on the dollar, until the total debt size is less than $150 million. Once it repays half of the notes, the company plans to return money to shareholders, according to the people.
The company’s outstanding $300 million of 12% secured notes due in 2028 rose to 99.5 cents on the dollar, after pricing at 98 cents on Sept. 13, according to Trace. Shares in M3-Brigade slipped 2.5% on Wednesday to $9.44 each.
Shares of the combined company will start trading at a time when oil prices are rallying. West Texas Intermediate crude oil futures reached a 10-month high on Tuesday, driven in part by significant supply curbs from Saudi Arabia and Russia.
(Updates share prices in sixth paragraph. An earlier version corrected spelling of company name in fifth paragraph.)
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