Gran Tierra Energy Secures New $75 Million Credit Facility
Gran Tierra Energy Inc. (NYSE American: GTE)(TSX: GTE)(LSE: GTE) has recently announced an exciting advancement through its wholly owned subsidiary, Gran Tierra Energy Colombia GmbH. The company has successfully entered into a reserve-based lending facility valued at up to US$75 million. This new facility aims to strengthen the company’s financial position and support its ongoing operations.
Importance of the New Facility
Ryan Ellson, Chief Financial Officer of Gran Tierra, shared his enthusiasm about the new credit facility, emphasizing its importance for both liquidity and for reinforcing the strength of the company’s business model amidst market turbulence. With a final maturity date set to occur in 36 months from the closing date, this facility showcases not only Gran Tierra's robust asset quality but also their dependable cash flow generation. This is pivotal for maintaining partner confidence and advancing the company’s strategic objectives.
Key Features of the Lending Facility
This lending facility brings several key benefits designed to bolster Gran Tierra's operational capabilities:
- A total commitment of US$75 million, with annual redetermination starting May 1, 2026.
- Interest on the facility is calculated based on a Term Secured Overnight Financing Rate plus a margin of 4.50% per year.
- The facility matures 36 months from the closure date, ensuring a solid timeline for repayment.
- All principal amounts, interest, and related payments are due by the maturity date, with an option for prepayment without penalties.
- This loan is secured against economic rights over specific contracts and Gran Tierra’s Colombian commercial establishment.
About Gran Tierra Energy
Gran Tierra Energy is an independent global energy firm that focuses on oil and natural gas exploration and production across a diverse range of locations, including Canada, Colombia, and Ecuador. The company is dedicated to nurturing its existing portfolio and seeks additional growth opportunities to further enhance its market position. Investors can follow Gran Tierra’s activities through its publicly traded stock on various exchanges, including NYSE American, Toronto, and London.
Contact for Inquiries
For media requests or investor relations, you may reach out to:
Gary Guidry, President & Chief Executive Officer
Ryan Ellson, Executive Vice President & Chief Financial Officer
Contact Number: +1-403-265-3221
Email: info@grantierra.com
Frequently Asked Questions
What is the primary purpose of the new credit facility?
The new credit facility aims to enhance Gran Tierra's liquidity, support operational flexibility, and contribute to long-term value for stakeholders.
How long does the credit facility last?
The credit facility has a final maturity date of 36 months from the closing date, providing ample time for Gran Tierra to manage its obligations.
What are the key financial terms of the facility?
The facility includes a commitment of US$75 million, interest based on a Term Secured Overnight Financing Rate plus a 4.50% margin, and flexible repayment options.
Where does Gran Tierra Energy operate?
Gran Tierra Energy operates primarily in Canada, Colombia, and Ecuador, with a focus on oil and natural gas exploration and production.
How can investors contact Gran Tierra for more information?
Investors can reach Gran Tierra by calling +1-403-265-3221 or emailing info@grantierra.com for inquiries.
