12/10/2012 03:57 EST | Updated 02/09/2013 05:12 EST

Oilsands company MEG Energy raising $800 million in pair of financing deals

CALGARY - MEG Energy Corp. (TSX:MEG) announced a pair of financing deals Monday to raise a total of $800 million, including one with the Caisse de depot et placement du Quebec.

The agreements came as the oilsands company said it planned $1.9 billion in capital spending next year including some $90 million in deferred capital spending from 2012.

MEG said the spending will include about $480 million on its RISER initiative to increase near-term production.

Production for 2013 is expected to be 32,000 to 35,000 barrels per day, up from its guidance of 26,000 to 28,000 for 2012.

The company set a target of 20 per cent for production growth compared with 2012 and a goal of ending 2013 with production rate of 37,000 to 43,000 barrels per day.

To help pay for the capital plan, MEG said it has agreed to sell nearly 12.13 million shares to a syndicate of underwriters for $33 per share and another 12.12 million shares to the Caisse de depot et placement du Quebec for the same price.

The underwriters have also been granted an over-allotment option for up to an additional 1.8 million shares. If the option is fully exercised, MEG would raise an additional $60 million.

The deal with the Caisse, an existing shareholder of the company, will bring its stake in MEG to about nine per cent, not including the over-allotment option.

MEG shares were down $1.07 or about three per cent at $33.65 on the Toronto Stock Exchange on Monday.

The company, which has oilsands operations in the southern Athabasca region in Alberta, was one of several smaller players in the industry to see its shares fall in the face of new foreign takeover rules announced by Ottawa last week.

Prime Minister Stephen Harper, in approving the takeover of Nexen Inc. (TSX:NXY) by Chinese company CNOOC, set out new rules that said state-owned enterprises would not be permitted to buy any more Canadian oilsands companies, except in exceptional circumstances.