Moody's assigns B2 to Gran Tierra notes

Moody's Investors Service said it assigned a B2 rating to Gran Tierra Energy Inc.'s up to $540 million in amortizing senior secured notes due 2029 for the exchange of the outstanding 6¼% senior unsecured notes due 2025 issued by Gran Tierra Energy International Holdings Ltd. and 7¾% senior unsecured notes due 2027 issued by Gran Tierra. The corporate family rating remains unchanged.

“The B2 rating on Gran Tierra's proposed notes is based on the company's small asset base; geographic asset and production concentration in Colombia; as well as execution risk at existing operations and elevated event risk from future growth. These factors are balanced by strong assets in Colombia's Middle Magdalena Valley, which have been in operation for decades,” Moody’s said in a press release.

The proceeds will be used primarily for the exchange of “notes and debt repayment, thus not affecting the company's debt protection metrics,” the agency said.

The outlook is stable.

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