Gran Tierra Energy plans tap issue of 9½% notes due 2029

By Marisa Wong

Los Angeles, Feb. 1 – Gran Tierra Energy Inc. announced it intends to offer an additional amount of its previously issued 9½% senior secured amortizing notes due 2029 in a private placement under Rule 144A and Regulation S of the Securities Act and under certain prospectus exemptions in Canada, subject to market and other conditions, according to a news release.

Gran Tierra currently has $487,590,000 aggregate principal amount outstanding of the 9½% notes due 2029.

The new notes will have the same terms and provisions as the original notes, except for the issue date and the issue price, and will form the same series as the original notes. Upon settlement, the add-on notes are expected to trade under the same Cusip as the original notes, except that the notes sold under Regulation S will have a different Cusip than the original notes until 40 days after the issue date.

The notes will be guaranteed by some subsidiaries of Gran Tierra.

The company intends to use the net proceeds from the offering to repay outstanding amounts borrowed under its existing credit facility, after which the credit facility will be terminated, and any remaining net proceeds for general corporate purposes, which may include additional capital to appraise and develop exploration discoveries, repayment of other debt, working capital or acquisitions.

Gran Tierra Energy is an oil and natural gas exploration and production company based in Calgary, Alta.

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