Obsidian Energy Ltd. Announces New Debt Offering and Redemption of Existing Notes
Obsidian Energy Ltd. (TSX: OBE, NYSE American: OBE) announced on 19 November 2025 that it has entered into an underwriting agreement to issue $175 million of 5‑year senior unsecured notes due in 2030. The offering was priced at $1,000 per note with a coupon rate of 3.75 % payable semi‑annually. The net proceeds are intended to refinance existing debt and support ongoing development projects in Canada.
In conjunction with the new issuance, the company will redeem its outstanding $80.8 million of senior unsecured notes due in 2027. The redemption will be executed at a discount of 3 % to the principal amount, resulting in a net cash outlay of approximately $78 million. The repayment will reduce long‑term debt and improve the company’s balance‑sheet profile.
The company’s CEO stated that the combined debt restructuring is part of a broader strategy to optimize capital structure and maintain flexibility for future exploration and development activities. Obsidian Energy’s market capitalization stands at CAD 573.8 million as of the close on 17 November 2025, with a current share price of CAD 8.81. The company’s price‑earnings ratio is -2.56, reflecting ongoing investment in asset development.
The 5‑year senior unsecured notes will be registered under the Canada Securities Act and will be available for purchase by institutional and qualified investors. The offering is expected to close on 23 November 2025.
This debt issuance and redemption align with Obsidian Energy’s objective to responsibly develop oil and natural gas resources for its Canadian customer base while maintaining a prudent debt‑to‑equity balance.
