S&P assigns B to Gran Tierra notes

S&P said it assigned a B issue-level rating to Gran Tierra Energy Inc. to its planned amortizing senior secured bond due 2029, affirmed its B rating and placed the issue ratings on CreditWatch with negative implications.

GTE plans to exchange part or all its senior unsecured notes due 2025 and 2027 for the planned 9˝% senior secured notes due 2029 with scheduled amortizations for up to $539.7 million.

“In our view, this refinancing will allow for more manageable maturities through 2026 and 2029 to reduce total debt. GTE should also benefit from its increasing operating cash flow and lack of expected major investment commitments in the next two years,” the agency said in a press release.

The agency added, “We also placed our B issue-level rating on the company's senior unsecured debt on CreditWatch with negative implications given the higher risk of subordination in the next 90 days.”

The outlook for GTE is positive.

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