NXY.PR.A Closes at Solid Premium on Strong Volume

Nexen Inc. has announced:

that we have completed our public offering of cumulative redeemable class A rate reset preferred shares, series 2 (the “Series 2 Shares”), which was announced on February 27, 2012.

With the underwriters fully exercising their option to acquire an additional 2 million Series 2 Shares, the size of the offering increased to a total of 8 million Series 2 Shares, resulting in gross proceeds of $200 million.

The net proceeds of the offering may be used to reduce Nexen’s indebtedness, for capital expenditures and for general corporate purposes.

The syndicate of underwriters was co-led by TD Securities Inc. and Scotiabank and included RBC Capital Markets, CIBC, BMO Capital Markets, National Bank Financial Inc., Desjardins Securities Inc. and HSBC Securities (Canada) Inc.

The Series 2 Shares will be listed on the Toronto Stock Exchange under the symbol “NXY.PR.A”.

NXY.PR.A is a FixedReset, 5.00%+359 announced February 27. It will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

NXY.PR.A traded 645,238 shares today in a range of 25.06-24 before closing at 25.22-23, 18×13. Vital statistics are:

Maturity Type : Call
Maturity Date : 2017-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.22
Bid-YTW : 4.83 %

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