Alvopetro Energy arranges $15 million three-year credit facility in two tranches

By Devika Patel

Knoxville, Tenn., Sept. 23 – The private placement market saw one new deal price on Monday. Calgary, Alta.-based Alvopetro Energy Ltd., a natural gas exploration and development company, announced a $15 million credit agreement with Cordiant Capital Inc. that will settle in two tranches.

The first $13 million tranche is expected to settle in the first week of October, and the second and final $2 million tranche will become available upon first production from the company’s Cabure natural gas development.

The loan is due in three years. Interest accrues at 9.5% per annum. In addition, 3% will be paid in kind upon repayment.

The investor also received warrants for 8,432,868 shares, each exercisable at $0.60 until Sept. 20, 2022.

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