On November 9, 2023, Suncor Energy Inc. announced the issuance of 5.60% Series 9 Medium-Term Notes totaling $1 billion to fund its acquisition of TotalEnergies EP Canada Ltd. The notes, maturing on November 17, 2025, were priced at $998.66 per $1,000 principal amount, with a yield to maturity of 5.672%. The offering generated net proceeds of approximately $996.66 million after commissions and estimated expenses. The proceeds will partially fund the $1.468 billion purchase of TotalEnergies EP Canada's 31.23% interest in the Fort Hills oil sands project, along with general corporate purposes.

The acquisition, effective April 1, 2023, is expected to close in Q4 2023, subject to final conditions. Suncor concurrently issued $500 million of Series 10 Medium-Term Notes due in 2026, with proceeds also allocated to the acquisition.

Legal advisors for the issuance included Blake, Cassels & Graydon LLP for Suncor and McCarthy Tétrault LLP for the dealers, which comprised CIBC, RBC Dominion Securities, TD Securities, Scotia Capital, Mizuho, J.P. Morgan, Merrill Lynch Canada, SMBC Nikko, Desjardins, and ATB Capital Markets.

This move underscores Suncor’s strategic focus on expanding its oil sands portfolio and reducing short-term indebtedness. The issuance is not contingent on the acquisition’s completion.