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Fitch ups Gran Tierra, rates notes B
Fitch Ratings said it upgraded Gran Tierra Energy International Holdings Ltd.'s long-term foreign- and local-currency issuer default ratings to B from B-, and its senior unsecured notes ratings to B/RR4 from B-/RR4. Fitch also assigned B long-term foreign- and local-currency issuer default ratings to Gran Tierra Energy Inc. and B/RR4 ratings to the proposed issuance of up to $600 million of amortizing senior secured notes due in 2029.
“The upgrades reflect GTE's improved leverage profile and cash flow profile supported by strong Brent prices and its low cost of production. The company generated $93 million in FCF and paid $190 million of its revolving credit facility by YE 2021. GTE's gross leverage is expected to be 1.2x in YE 2022 compared with 8.6x in 2020, and total debt to 1P is expected to be $9.97/boe compared with $12.16/boe in 2020,” Fitch said in a press release.
The proceeds will be used in an exchange for the outstanding 6¼% senior unsecured notes due 2025 issued by Gran Tierra Energy International and 7¾% senior unsecured notes due 2027 issued by Gran Tierra Energy.
The outlook is stable.
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