Gran Tierra closes $130 million bridge loan for PetroLatina purchase

By Wendy Van Sickle

Columbus, Ohio, Aug. 29 – Gran Tierra Energy Inc. added a 364-day $130 million bridge term loan facility under an Aug. 23 amendment to its existing $500 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The bridge loan was used along with cash on hand and other credit facility borrowings to fund Gran Tierra’s acquisition of Petrolatina Energy Ltd. for a consideration of $525 million, consisting of $500 million paid at closing on Aug. 23 and $25 million due by Dec. 31.

Bank of Nova Scotia was lead arranger and bookrunner of the bridge loan and is administrative agent of the credit agreement, originally dated Sept. 18, 2015. Bank of Nova Scotia and Societe Generale are the joint lead arrangers and bookrunners of the existing revolving loans.

The bridge loan bears interest at Libor plus 600 basis points. It matures Aug. 22, 2017.

The revolver matures Sept. 18, 2018.

Gran Tierra is an oil and gas exploration and production company based in Calgary, Alta. London-based PetroLatina explores and extracts Latin American oil and gas reserves.

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