Gran Tierra Energy gets $500 million three-year facility at Libor plus 200-300 bps

By Susanna Moon

Chicago, Sept. 21 – Gran Tierra Energy Inc. and Gran Tierra Energy International Holdings Ltd., a wholly owned indirect subsidiary, obtained a $500 million three-year credit facility on Sept. 18 with Scotiabank and Societe Generale as joint lead arrangers and bookrunners, according to an 8-K filing with Securities and Exchange Commission.

The initial borrowing base is $200 million, and the borrowing base will be reset semiannually based on reserve evaluation reports, up to a maximum of $500 million.

The credit agreement includes a letter of credit sub-limit of up to $100 million.

Interest on the loans will be Libor plus a spread of 200 basis points to 300 bps, based on the borrowing base utilization percentage.

The unused fee is 75 bps.

A letter of credit participation fee of 25 bps will accrue on the average daily amount of letter of credit exposure.

Loans under the agreement will mature on Sept. 18, 2018.

Scotiabank is the administrative agent.

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

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