Frontera Energy refinances with $120 million loan facility due 2027

By Marisa Wong

Los Angeles, March 27 – Frontera Energy Corp. announced that wholly owned subsidiary Pipeline Investment Ltd. has entered into a credit agreement with Macquarie Group for a $120 million loan facility guaranteed by Sociedad Portuaria Puerto Bahia SA, Frontera Bahia Holding Ltd. and Frontera ODL Holding Corp.

The credit agreement refinances Puerto Bahia’s debt, extending its term to December 2027, according to a press release.

Specifically, proceeds of the new loan will be primarily used to repay in full the existing senior loan of Puerto Bahia maturing in June 2025, which has an outstanding balance plus accrued interest of $106.2 million.

The credit agreement also includes an accordion feature for up to $30 million, which may be drawn by Puerto Bahia to fund additional investment opportunities, including potential liquids and dry terminal expansion projects.

The loan has a scheduled $45 million payment due at maturity in December 2027.

The loan consists of two tranches: a $100 million amortizing tranche with a rate of six-month SOFR plus a margin of 725 basis points and a $20 million bullet maturity tranche with a fixed rate of 11%.

The new loan is effectively supported by the cash flows from Frontera’s standalone and growing midstream business, is non-recourse to Frontera and remains subject to customary closing conditions.

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

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