Canacol Energy secures $265 million term loan at Libor plus 550 bps

By Wendy Van Sickle

Columbus, Ohio, Feb. 16 – Canacol Energy Ltd. entered into a credit agreement for a $265 million senior secured term loan with Credit Suisse as the bookrunner and lead arranger, according to a press release.

The new term loan is due March 20, 2022 and bears interest at Libor plus 550 basis points.

It replaces the company’s BNP Paribas facility and its Apollo Investment Corp. senior notes. Proceeds will be used to repay $180 million of the BNP facility and the $75 million of notes plus accrued interest and transaction costs.

According to the release, the new agreement will provide benefits such as deferring amortization payments until March 2019, allowing the company to dedicate capital to high-netback production-related projects instead of debt service.

It also reduces total annual interest by about 110 bps compared to the combined interest expense of the BNP facility and the Apollo notes.

There is an option to expand the facility by $40 million during the 12 months post-funding, which occurred on Thursday.

The mandated lead arrangers were Export Development Canada, Davivienda, Citibank and Managers Metrobank, Banco Internacional de Costa Rica, Banco Latinoamericano de Comercio Exterior, BHD International Bank and Bancaribe.

Canacol Energy, based in Calgary, Alta., is an exploration and production company with operations focused in Colombia and Ecuador.

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