Frontera Energy Extends Tender Offer for Senior Notes

Frontera Energy's Tender Offer Update

Frontera Energy Corporation (TSX: FEC) has provided important news regarding their tender offer and consent solicitation for their outstanding 7.875% Senior Secured Notes due 2028. Recently, the company revealed significant details about the early tender date and consent deadline extension.

Details of the Tender Offer

As of the latest update, certain holders of the 7.875% Senior Secured Notes have either tendered their notes or submitted their consent under the terms outlined in the Offer to Purchase and Consent Solicitation Statement. Given the aggregate principal amount of origin at U.S. $124,134,000, Frontera aims to encourage more participation among holders of these notes.

Extended Deadlines for Participation

The company has announced that it is extending the Early Tender Date and Consent Deadline from a prior date to a new deadline. This extension provides additional time for participants to consider their options and submit their tenders or consents. The revised date is now set to take place at 5:00 p.m. NYC time on June 9, 2025, aligning this new deadline with the anticipated expiration time of the offer.

Considerations for Tendering Notes

Holders who decide to validly tender their notes before the extended deadline will be entitled to receive the Total Consideration, which encompasses both the Early Tender and Consent Payment alongside accrued interest. Additionally, it's essential to highlight that any notes submitted after the Withdrawal Deadline cannot be withdrawn, emphasizing the importance of timely participation.

Impact of Conditions on the Offer

It is crucial to note that the successful completion of the tender offer is contingent upon satisfying all conditions detailed in the Offer to Purchase. Frontera Energy has indicated that while some conditions have already been satisfied, they retain discretion regarding changes to the offer and solicitations. This strategic flexibility allows the company to adapt to market conditions and participant involvement.

Settlement Expectations

The anticipated settlement for the tendered notes will occur on June 11, 2025. This includes all validly tendered notes and consents received before the Extended Early Tender Date and Consent Deadline. The company also states that the Maximum Tender Amount may be modified based on prevailing conditions, ensuring that the needs of all stakeholders are considered during the process.

Participant Confidence and Market Conditions

Frontera's management remains optimistic about achieving a robust participation rate in the tender offer and encourages holders to evaluate their positions carefully. Given the market’s dynamics and the global economic landscape, the company's ongoing commitment to transparency and open communication will facilitate informed decision-making among investors.

Monitoring the Tender Offer

Investors are encouraged to stay informed about the progress of the tender offer as Frontera will keep its shareholders updated. For those needing further information, the company has appointed Citigroup Global Markets Inc. and Itau BBA USA Securities, Inc. as dealer managers, while Morrow Sodali International LLC acts as the information and tender agent.

About Frontera Energy

Frontera Energy Corporation operates as a prominent player in the oil and natural gas industry in South America, focusing on exploration, production, and distribution. The company holds a diversified portfolio across multiple countries, ensuring a strategic foothold in both upstream and midstream operations. With a commitment to sustainable practices, Frontera prioritizes the welfare of local communities and the environment, striving to enhance value for its stakeholders while adhering to responsible business practices.

Frequently Asked Questions

What is the new deadline for the tender offer?

The new deadline for the tender offer is June 9, 2025, at 5:00 p.m. NYC time.

Who can participate in the tender offer?

Holders of the 7.875% Senior Secured Notes due 2028 are eligible to participate in the tender offer.

What happens if I tender my notes?

If you tender your notes before the deadline, you will receive the Total Consideration, which includes accrued interest.

What are the conditions for the tender offer?

The completion of the tender offer is contingent upon the satisfaction of conditions outlined in the Offer to Purchase.

How can I get more information about the offer?

For more information, contact Citigroup Global Markets Inc. or Itau BBA USA Securities, as they are managing the tender offer.

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