Gran Tierra repays $130 million bridge loan used for PetroLatina buy

By Wendy Van Sickle

Columbus, Ohio, Nov. 16 – Gran Tierra Energy Inc. fully repaid its $130 million bridge term loan facility on Wednesday after increasing the borrowing base of its revolving credit facility to $250 million from $185 million, according to an 8-K filing with the Securities and Exchange Commission.

The borrowing base was increased via an amendment to the credit agreement dated Sept. 19, 2015 with Bank of Nova Scotia as administrative agent.

Gran Tierra added the 364-day bridge term loan under the credit agreement in August to fund part of its 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.

It was scheduled to mature on Aug. 22, 2017 and had interest of Libor plus 600 basis points.

The revolver matures on 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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