Whitecap Resources Inc. announced that it has closed an issuance of CAD 200 million senior secured notes which have an annual coupon rate of 3.46% and mature on January 5, 2022. The notes were issued by way of a private placement, pursuant to a note purchase and private shelf agreement, and rank equally with Whitecap's obligations under its bank facilities. Proceeds from the notes will be used to repay a portion of Whitecap's outstanding bank debt. The issuance of the senior notes expands Whitecap's borrowing capacity to $1.3 billion from $1.1 billion and enhances capital structure by diversifying debt at a very attractive long term fixed interest rate. This provides more predictability to free cash flow, strengthens financial flexibility and improves the overall sustainability of dividend-growth model. Whitecap remains well positioned to execute on business plan with an estimated fourth quarter of 2016 net debt to funds flow ratio of 1.8x and is targeted to decrease to 1.3x in 2017.