Gran Tierra Announces New, Increased Credit Facility
CALGARY, ALBERTA–(Marketwired – Sept. 21, 2015) – Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE MKT:GTE)(TSX:GTE), is pleased to announce that, through its wholly owned subsidiary Gran Tierra Energy International Holdings Ltd., it has secured a credit facility of up to US$500 million with a current borrowing base of US$200 million. The facility replaces Gran Tierra’s previous credit facility that had a borrowing base of US$150 million. The new facility is with a syndicate of lenders led by Scotiabank as Administrative Agent, and Scotiabank and Société Générale as Joint Lead Arrangers and Joint Bookrunners. The syndicate also includes HSBC Bank Canada as Mandated Lead Arranger, Export Development Canada and Natixis as Lead Managers, and Royal Bank of Canada as Participant. The new facility has a final maturity date of September 2018.
Highlights of the new facility include:
- Current borrowing base of US$200 with the next redetermination in May of 2016;
- Secured by Colombian Assets;
- Decrease in cost compared to previous credit facility;
- Commitment fee of 0.75%, previously was 0.875%
- Interest rate decrease of 0.25%
- The margin on the facility is Libor plus 2.00% to 3.00% depending on utilization
- Less constrained financial covenants
Ryan Ellson, Chief Financial Officer for Gran Tierra commented today:
“We are very pleased to have successfully closed a new credit facility in a difficult environment. In conjunction with our strong operating cash flow it will provide a solid foundation for growth in Colombia. The support we received from the lending banks demonstrates the underlying confidence in our producing assets as well as the business environment in Colombia, especially in today’s commodity price environment.”
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company engaged in oil and gas acquisition, exploration, development and production. Gran Tierra owns the rights to oil and gas properties in Colombia, Peru and Brazil.
Gran Tierra’s SEC filings are available on a web site maintained by the SEC at http://www.sec.gov and on SEDAR at http://www.sedar.com. The credit facility is expected to be filed and available thereon.