Penn West confirms closing of its private placement of
notes and provides information on non-resident withholding tax
Penn West Petroleum Ltd. ("Penn West") (TSX:PWT) (NYSE:PWE) confirms the closing of its previously
announced issuance of senior unsecured notes with aggregate principal amounts
of approximately $135 million. The notes were issued on a private placement
basis in the United States and Canada.
The notes issued have an
average term of 8.1 years and an average interest rate of 4.49 percent. The
notes are unsecured and rank equally with Penn West's bank facilities and Penn
West's existing senior notes. The proceeds of the notes were used to repay a portion
of Penn West's advances under its credit facilities. Penn West's portfolio of
senior unsecured notes now totals approximately $2.0 billion and comprises
approximately 63 percent of its debt capital.
Non-resident withholding
tax
Penn West wishes to advise
all shareholders that the Canada Revenue Agency ("CRA") has
introduced new rules which may require residents of countries with which Canada
has a tax treaty to certify that they are eligible for treaty benefits in that
country in order to continue to have non-resident tax withheld at the tax rate
specified by the applicable tax treaty (the "Tax Treaty Rate").�
Income tax treaties between Canada and foreign countries generally provide for
a lower rate of withholding tax to be deducted from various kinds of income
payments to non-residents of Canada, including dividends.
Registered non-resident
shareholders whose names appear on the records of the registrar and transfer
agent of Penn West will receive a form directly from Penn West's transfer agent
requesting information to confirm tax treaty eligibility. Until such form is
completed and returned to Penn West's transfer agent, any applicable Tax Treaty
Rate will not be applied. To qualify for any applicable Tax Treaty Rate on Penn
West's fourth quarter dividend of $0.27 per share payable on January 13, 2012,
registered non-resident shareholders must return such form to Penn West's
transfer agent on or before December 30, 2011.
Non-registered,
non-resident shareholders' eligibility for any applicable Tax Treaty Rate will
be determined by each shareholder's broker and not by Penn West or its transfer
agent. Non-registered shares are generally held in a brokerage account and are
thus registered in the name of the investor's broker or a depositary.�
Certain brokers may require additional information or certifications in order
to determine a non-registered shareholder's eligibility for any applicable Tax
Treaty Rate.� Non-resident, non-registered
shareholders are encouraged to contact their brokers or other tax, legal or
financial advisors in the event that they have any questions or concerns in
this regard.
The foregoing tax related
information is provided for information purposes only.� The information is of a general nature only, is not
exhaustive of all tax considerations and is not intended to constitute legal or
tax advice to any investor.� Penn West
encourages shareholders to seek advice from their respective broker or tax,
legal or financial advisor for additional information relating to the status of
their residency for tax purposes.
Penn West Exploration
common shares and debentures are listed on the Toronto Stock Exchange under the
symbols PWT and PWT.DB.F and Penn West Exploration common shares are listed on
the New York Stock Exchange under the symbol PWE.