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Parex Resources to Issue Private Offering of US$500 Million Senior Notes

BY MT Newswires | CORPORATE | 09:27 AM EDT

09:27 AM EDT, 05/07/2026 (MT Newswires) -- Parex Resources (PARXF) will issue US$500 million aggregate principal amount of senior unsecured notes due 2031 in a private placement offering, it said Thursday.

The notes were priced at par and will bear interest at a rate of 8.50% per annum and mature on May 11, 2031. Closing of the offering is expected to on May 11, it added.

Proceeds, after payment of the initial purchasers' fees and estimated offering expenses, will be deposited into an escrow account pending satisfaction of certain escrow release conditions, including the consummation of the previously announced acquisition of Frontera Energy Corporation's (FECCF) exploration and production assets in Colombia, it said. Net proceeds, upon satisfaction of the escrow release conditions, will be released.

Parex will use the proceeds to fund the cash portion of the consideration for the Frontera deal, and to pay fees and expenses in connection with the Frontera deal and the offering. Proceeds not used for such purposes will be used for general corporate needs.

Shares in Parex were down more than 4% yesterday.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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