Gran Tierra Energy obtains $300 million credit facility due 2016

By Marisa Wong

Madison, Wis., Sept. 6 - Gran Tierra Energy Inc. entered into a $300 million credit facility on Aug. 30 with Wells Fargo Bank, NA as administrative agent and global coordinator, according to an 8-K filed Friday with Securities and Exchange Commission.

Societe Generale is the syndication agent; Wells Fargo Securities, LLC is the lead arranger and bookrunner; and Bank of Nova Scotia is the documentation agent for the facility.

Availability is determined by a proven reserves-based borrowing base. The initial borrowing base is $150 million, and the borrowing base will be redetermined semiannually, subject to a maximum of $300 million.

The credit facility, which matures on Aug. 30, 2016, includes a $30 million letter-of-credit sublimit.

Borrowings bear interest at Libor plus a margin ranging from 225 basis points to 325 bps, depending on the borrowing base utilization percentage.

The commitment fee for undrawn amounts is 87.5 bps, and the letter-of-credit fee is 25 bps.

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

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