Frontera Energy Revises Tender Offer and Increases Amount
Frontera Energy Corporation Updates Tender Offer Terms
Frontera Energy Corporation, hereinafter referred to as the "Company" or "Frontera," has announced some significant updates regarding its cash tender offer and consent solicitation for its outstanding 7.875% Senior Notes due 2028. The decision to amend the terms of the offer arises from the Company's ongoing commitment to improving the investment conditions for its stakeholders.
Enhanced Offer Details
The Company has increased the Maximum Tender Amount from a previous total of U.S. $65 million to an impressive U.S. $80 million. This adjustment aims to provide better opportunities for noteholders to participate in the tender offer. The revised terms of the offer reflect Frontera’s interest in fostering better interaction and stronger relationships with its investors.
Changes in Pricing and Payments
Additionally, the Company has modified the Consent Payment associated with the offer. Notes validly tendered before the deadline, which is set for a specified time period in June, will benefit from an increased aggregate payment amounting to U.S. $8 million, shared pro rata among tendering holders. This enhanced financial consideration underscores Frontera’s proactive approach to incentivizing participation in the offer.
Increased Tender Consideration
Another critical change includes the increase of the consideration for each U.S. $1,000 principal amount of Notes validly tendered before the deadline, now rising from U.S. $700 to U.S. $720, referred to as the "Amended Tender Consideration." This adjustment provides an additional reason for noteholders to participate as Frontera aims to ensure its notes remain an attractive investment opportunity.
Pro-Rata Shares for Non-Accepted Notes
It’s important to note that holders of notes who validly tender their notes but do not have them accepted due to oversubscription will still receive a pro-rata share of the Amended Consent Payment. This measure further promotes fairness and keeps holders informed and engaged with the tender process.
Overview of Participation Scenarios
Frontera has also provided insights through illustrative examples of various participation scenarios in the tender offer. For instance, based on the level of consent participation, holders can anticipate their pro-rata shares along with the approximate payments they will receive if their notes are accepted for purchase.
The upcoming tender settlement date is anticipated to occur in June shortly after the extended early tender date. The Company emphasizes that the entire settlement process remains contingent on fulfilling specific requirements, and all documents will need to be processed within the stipulated timelines.
Continuing Commitment to Stakeholders
The changes implemented by Frontera reflect its broader strategy of aligning goals with the interests of its investors and providing an avenue for enhanced liquidity and investment returns. The amendments, including the revised payment amounts and participatory structures, showcase the Company’s determination to create value for its shareholders.
About Frontera Energy Corporation
Frontera Energy Corporation is a leading Canadian public company engaged in the exploration, production, and sale of oil and natural gas, primarily in South America. With a diversified portfolio and a commitment to responsible operations, Frontera is dedicated to conducting its activities in a manner that reflects its environmental and social responsibilities. Its common shares trade on the Toronto Stock Exchange under the ticker symbol "FEC" and continue to draw interest from a wide range of investors.
Frequently Asked Questions
What are the recent changes to the tender offer by Frontera Energy Corporation?
The Company has increased the Maximum Tender Amount to U.S. $80 million and enhanced the Consent Payment structure to incentivize more holders to participate.
How will the Amended Tender Consideration be calculated?
The Amended Tender Consideration has risen to U.S. $720 per U.S. $1,000 principal amount of Notes validly tendered before the specified deadline.
What happens if my tendered notes are not accepted?
If your notes are validly tendered but not accepted due to oversubscription, you will still receive a pro-rata share of the Amended Consent Payment.
When does the tender settlement occur?
The tender settlement is expected to occur shortly after the Extended Early Tender Date, which is set for June.
Where can I find more information about Frontera Energy Corporation?
Additional information regarding the Company can be found on their official website and other financial news platforms, alongside important announcements regarding the tender offer.
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