By Marisa Wong
Los Angeles, Feb. 2 – Gran Tierra Energy Inc. priced an additional $100 million of 9½% senior secured amortizing notes due 2029 in a private placement under Rule 144A and Regulation S and under certain prospectus exemptions in Canada, according to a news release.
Gran Tierra previously had $487.59 million 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 offering is expected to close on Feb. 6.
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. Any remaining net proceeds will be used for general corporate purposes, which may include additional capital to appraise and develop exploration discoveries, for repayment of other debt, for working capital or for acquisitions.
Gran Tierra Energy is an oil and natural gas exploration and production company based in Calgary, Alta.
| Issuer: | Gran Tierra Energy Inc.
|
| Amount: | $100 million
|
| Issue: | Senior secured amortizing notes, add-on
|
| Maturity: | 2029
|
| Coupon: | 9½%
|
| Announcement date: | Feb. 1
|
| Settlement date: | Feb. 6
|
| Distribution: | Rule 144A and Regulation S; Canadian private placement
|
| Total issuance: | $587.59 million
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
