Frontera Energy gives early results for tender offer and solicitation

Chicago, June 21 – Frontera Energy Corp. announced the early tender results under its tender offer and consent solicitation for any and all of its outstanding 9.7% senior notes due 2023 (Cusips: 35905BA5, C35898AA0), according to a press release.

As of the early deadline of 5 p.m. ET on June 18, the company received tenders and consents from holders of $286,599,000, or 81.89%, of the $350 million outstanding notes.

The company has received sufficient consents to amend the notes.

As a recap, the proposed amendments will eliminate substantially all of the restrictive covenants and some events of default and related provisions and shorten the minimum notice period for the optional redemption of the notes by the company from 30 days to three business days.

The tender offer is subject to a financing condition but is not conditioned on the tender of any minimum principal amount of notes.

The conditions have not yet been satisfied in full.

The company is offering to pay a total consideration of $1,048.50 per $1,000 principal amount of notes tendered at or before the early deadline. The total consideration includes an early tender payment of $30 per $1,000 principal amount.

Holders tendering after the early deadline will only be eligible to receive a tender offer consideration of $1,018.50 per $1,000 note.

In either case, the company will also pay accrued interest to but excluding the applicable settlement date.

Settlement for early tendered notes is still expected to occur on or about June 21. Settlement for all notes tendered after the early deadline will occur promptly after the expiration time.

The offer will expire at 11:59 p.m. ET on July 2.

The withdrawal deadline has passed.

After settlement of early tendered notes, the company plans to issue a notice of redemption for any remaining notes not tendered under the offer.

Citigroup Global Markets Inc. (212 723-6106), Credit Suisse Securities (USA) LLC (800 820-1653) and Itau BBA USA Securities, Inc. (888 770-4828) are acting as dealer managers for the offer.

The depositary and the information agent is Global Bondholder Services Corp. (866 470-3900).

Frontera is a Toronto-based company involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America.

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