Gran Tierra announces new credit facility

Gran Tierra Energy announced it has secured a credit facility of up to $500 million with a current borrowing base of $200 million through its wholly owned subsidiary Gran Tierra Energy International Holdings.

The facility replaces Gran Tierra's previous credit facility that had a borrowing base of $150 million.

It was negotiated with a syndicate of lenders led by Scotiabank as administrative agent and Scotiabank and Société Générale as joint lead arrangers and joint book-runners. 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.

Among the highlights of new facilities are the current borrowing base of $200 million with the next re-determination in May 2016; security by Colombian Assets; a decrease in cost compared to the previous credit facility; a commitment fee of 0.75 percent; an interest rate decrease of 0.25 percent; a margin on the facility of Libor plus 2 to 3 percent, depending on utilization; and less-constrained financial covenants.

Organizations in this story

Gran Tierra Energy Inc. 150 13 Avenue Southwest Calgary, AB T2R 0V2

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