Fitch rates GeoPark notes B+

Fitch Ratings said it assigned a B+/RR4 rating to GeoPark Ltd.’s proposed up to $350 million notes due 2027. GeoPark plans to use the proceeds to finance its recently announced acquisition of Amerisur Resources and for general corporate purposes. Fitch currently rates GeoPark long-term foreign and local currency issuer default ratings B+ with a stable outlook, and $425 million senior notes due 2024 B+/RR.

GeoPark’s ratings mirror the company’s track record of increasing production and improving reserve life, and ability to implement an effective cost-reduction plan. Fitch’s base case scenario expects GeoPark will reach production of nearly 50,000 barrels of oil equivalent per day (boed) by 2020-2021 and will have an average pro-forma total adjusted debt/operating EBITDAR of below 2x over the rate horizon.

The rating also reflects Fitch’s expectations GeoPark will continue to strengthen its capital structure following a deleveraging process that could result in net leverage below 1x on average.

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