Petro-Canada Establishes $1.15B Credit Facilities

Petro-Canada completed, on March 18, 2004, the establishment of two syndicated credit facilities in the aggregate amount of $1.15 billion to be used for general corporate purposes, including to act as liquidity support for Petro-Canada’s commercial paper program and to repay other debt. The new facilities replace the series of committed bilateral credit facilities Petro-Canada had in place, as well as a component of the acquisition credit facilities Petro-Canada established to fund the purchase of Veba Oil & Gas GmbH in 2002 for $3.2 billion. Separate facilities, domestic and international, were established to support Petro-Canada’s North American and international activities.

Because of Petro-Canada’s acquisition, as part of the Veba transaction of operations in Libya and Syria, separate domestic and international facilities were established. Any funding of Petro-Canada’s operations in Libya and Syria will only be permitted under the international facility, in which US-based banks will not be participating.

Petro-Canada was represented in-house by Hugh Hooker, associate general counsel; and assisted by Fraser Milner Casgrain LLP, with a team that included Bill Jenkins, Tom Pepevnak, Stephanie Campbell and Andrew Donohoe. The lenders were represented by John Wilmot and David Grout of Burnet, Duckworth & Palmer LLP.

The lenders and Petro-Canada were represented in regards to certain US and Canadian legislation to Petro-Canada’s international operations, by Peter Glossop and Shuli Rodal of Osler, Hoskin & Harcourt LLP; and by Edwin Williamson of Sullivan & Cromwell LLP in Washington.