TD Bank’s $1 billion corporate financing loan

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The transaction was the first covenant-based loan for a private exploration and production company in Canada.

BD&P’s role

We were counsel to TD Bank (the administrative agent) and a syndicate of eight lenders for a loan connected to the amalgamation of Strathcona Resources Ltd. and Osum Oil Sands Corp.

Although this was a large deal, it was relatively straightforward. Since TD has done acquisition financing many times before––and is a longstanding BD&P client––it was an even smoother process.

Our team’s work involved:

  • Due diligence on the entity being acquired, including its assets.
  • Reviewing the acquisition agreement and the amalgamation process.

The results

The transaction created the largest private equity-owned oil producer in North America. It also marks the first new covenant-based loan issued to a Canadian oil and gas producer since 2018 and the first-ever for a private exploration and production company in Canada.

Since the completion of this matter, TD has done two more similar transactions (as of February 2022) with BD&P as counsel.