Canacol Energy closes on two new credit facilities, amends 2018 loan

By Taylor Fox

New York, Aug. 4 – Canacol Energy Ltd. has entered into a $46 million senior unsecured revolving credit facility, entered into a $75 million senior unsecured bridge term loan and re-profiled its $30 million 2018 credit facility, according to a news release.

Canacol entered into the $46 million revolver with a syndicate of banks on July 31.

The three-year revolver bears interest at Libor plus 475 basis points.

Canacol will pay a commitment fee to the syndicate of 30% of the 475 bps interest margin on any undrawn amounts throughout the term. The revolver will be undrawn at the start, the company noted.

The revolver will not be subject to typical periodic redeterminations.

Covenants are aligned with existing covenants on Canacol’s May 2025 senior unsecured notes.

Credit Suisse, Banco Davivienda and Citigroup were joint lead arrangers and joint bookrunners on the revolver.

A Canacol subsidiary entered into the $75 million bridge term loan with a syndicate of banks on July 31.

The two-year bridge loan bears interest at Libor plus 425 bps.

Within 30 days of the closing, the subsidiary is obligated to draw the first $25 million of the loan, with the remaining $50 million to be available to be drawn at any time up to 12 months from the closing date.

The subsidiary will pay a commitment fee to the syndicate of 30% of the 425 bps margin on any undrawn amounts throughout the availability period.

Covenants under the bridge loan are consistent with the existing covenants on the company’s May 2025 senior notes.

Credit Suisse, Banco Davivienda, Citigroup and Itau were joint lead arrangers and joint bookrunners on the bridge loan.

In June, Canacol amended its 2018 credit agreement of $30 million with Credit Suisse for an interest rate of Libor plus 425 bps, an extension of the first amortization payment to Dec. 31, 2021 and an extension of the maturity date to June 30, 2023.

The 18-month extension adds about $16 million of additional liquidity to Canacol through the end of 2021, based on principal repayments alone, the release noted.

Calgary, Alta.-based Canacol is an energy exploration and production company operating in Colombia.

© 2015 Prospect News.
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