Canadian Oil Sands Trust

Canadian Oil Sands Trust

May 06, 2009 23:59 ET

Canadian Oil Sands Prices US$500 Million of Senior Notes

CALGARY, ALBERTA--(Marketwire - May 6, 2009) -


Canadian Oil Sands Trust (the "Trust") (TSX:COS.UN)today announced that its wholly-owned subsidiary, Canadian Oil Sands Limited (the "Corporation"), has agreed to issue US$500 million principal amount of 7.75% senior unsecured notes. The notes mature on May 15, 2019 and were priced at $99.792 to yield 7.78%.

Proceeds from the issue will be used to repay the principal amount on maturity of approximately CAD$200 million of unsecured notes which mature on June 29, 2009 and approximately US$250 million of unsecured notes which mature on August 10, 2009, as well as for other general corporate purposes. The transaction is expected to close on May 11, 2009, subject to customary closing conditions.

The offering is being made pursuant to Rule 144A under the Securities Act of 1933 (the "Act"). The offering will not be registered under the Act and none of the notes may be offered or sold in the United States absent registration under the Act or the availability of an applicable exemption from registration requirements. Offers and sales in Canada will be made only pursuant to exemptions from the prospectus requirements of applicable Canadian provincial or territorial securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security.

Canadian Oil Sands provides a pure investment opportunity in the Syncrude Project through its 36.74 per cent working interest. The Trust is an open-ended investment trust managed by Canadian Oil Sands Limited and has approximately 483.2 million units outstanding, trading on the Toronto Stock Exchange under the symbol COS.UN.

Located near Fort McMurray, Alberta, Syncrude Canada operates large oil-sands mines and an upgrading facility that produces a light, sweet crude oil on behalf of its joint venture owners, which include Canadian Oil Sands Limited, ConocoPhillips Oilsands Partnership II, Imperial Oil Resources, Mocal Energy Limited, Murphy Oil Company Ltd., Nexen Oil Sands Partnership, and Petro-Canada Oil and Gas.

Advisory: In the interest of providing Canadian Oil Sands (the "Trust" or "we") unitholders and potential investors with information regarding the Trust, including management's assessment of the Trust's future plans and operations, certain statements throughout this press release contain "forward-looking statements". Forward-looking statements in this release relate to the anticipated closing date for this transaction and the Trust's expectations that the offering will be successfully completed consistent with the terms outlined above. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Although the Trust believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this release include, but are not limited to, general capital market disruptions and such other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by the Trust. You are cautioned that the foregoing list of important factors is not exhaustive. Furthermore, the forward-looking statements contained in this release are made as of the date of this release, and the Trust does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this release are expressly qualified by this cautionary statement.

Canadian Oil Sands Limited

Marcel Coutu, President & Chief Executive Officer

Units Listed - Symbol: COS.UN
Toronto Stock Exchange

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