Gran Tierra arranges $130 million bridge loan for PetroLatina purchase

By Tali Rackner

Norfolk, Va., July 1 – Gran Tierra Energy Inc. has received a commitment from Scotiabank to provide $130 million of bridge financing to fund a portion of its $525 million acquisition of PetroLatina Energy Ltd., according to a press release.

The bridge facility is expected to have a tenor of 364 days, bear interest at Libor plus 600 basis points and have customary bridge facility repayment terms allowing for multiple longer-term financing options.

The company will also use available borrowings under its existing credit facilities, cash and a private placement of subscription receipts to fund the transaction, the release said.

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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