Gran Tierra enters into $150 million replacement credit facility

Chicago, Aug. 18 – Gran Tierra Energy Inc. entered into a $150 million credit facility to replace the company’s previous credit facility with a borrowing base of the same amount, according to a press release.

The new facility lists Gran Tierra Energy Colombia, LLC and Gran Tierra Colombia Inc. as borrowers.

The initial commitment is for $100 million with an option for an additional $50 million.

The lender is Trafigura, a market leader in the global commodities industry.

Interest is SOFR plus 600 basis points.

The maturity date is Aug. 15, 2024, but can be extended to Feb. 18, 2025 if certain conditions are met.

Security for the loan comes from economic rights over certain contracts together with Gran Tierra’s Colombian commercial establishment.

In connection with the new facility, certain of Gran Tierra’s wholly owned subsidiaries have entered into commercial contracts for the purchase by Trafigura of crude oil from Gran Tierra’s producing fields in Colombia. The facility will be repaid through deduction of the price payable by Trafigura for the crude oil delivered under the contracts.

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

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