Harvest Operations announces US $285M senior note offering

News Release


CALGARY, ALBERTA – SEPTEMBER 14, 2017: Harvest Operations Corp. (“Harvest” or the “Company”) is pleased to announce that it has agreed to issue and sell U.S.$ 285 million senior unsecured notes due 2022 with a coupon rate of 3% (the “Notes”). The Notes have been rated Aa2 and AA by Moody’s Investors Service and S&P Global Ratings, respectively.

The Notes will be unconditionally and irrevocably guaranteed by Harvest’s parent company Korea National Oil Corporation (“KNOC”). Closing of the offering is expected on September 21, 2017.
HSBC Securities (Canada) Inc., CIBC World Markets Inc. and Citibank Global Markets Inc. are acting as joint bookrunners and lead managers for the offering.

Approval in-principle has been received for the listing and quotation of the Notes on the Singapore Exchange Securities Trading Limited (SGX).

Harvest intends to use the net proceeds of the offering to repay in full Harvest’s outstanding approximately U.S.$282,500,000 aggregate principal amount of 67/8% Senior Notes due October 1, 2017.
The Notes have not been registered under the Securities Act of 1933, as amended (the “Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Act. The offering will be made solely by means of a private placement either to qualified institutional buyers pursuant to Rule 144A under the Act, or to certain persons outside of the United States pursuant to Regulation S under the Act.

This press release is neither an offer to sell nor a solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offering, solicitation or sale would be unlawful.


Harvest is a wholly-owned, subsidiary of Korea National Oil Corporation (“KNOC”). Harvest is a significant operator in Canada’s energy industry offering stakeholders exposure to exploration, development and production of crude oil and natural gas (Upstream) and an oil sands project under construction and development in northern Alberta (BlackGold).

KNOC is a state owned oil and gas company engaged in the exploration and production of oil and gas along with storing petroleum resources. KNOC will fully establish itself as a global government-run petroleum company by applying ethical, sustainable and environment-friendly management and by taking corporate social responsibility seriously at all times. For more information on KNOC, please visit their website at www.knoc.co.kr/ENG/main.jsp.