Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Gran Tierra Energy Inc - focused on oil and gas exploration and production in Colombia and Ecuador - Signs new credit facility via two Colombian subsidiaries. ‘The facility replaces Gran Tierra's previous credit facility that had a borrowing base of $150 million,’ firm explains. Aim of the facility is to provide financial flexibility. Credit facility is with Singapore-based multinational commodity trader Trafigura Group Pte Ltd, Gran adds. The facility lasts until August 2024 but can be extended to February 2025. Interest on the facility is a risk-free secured overnight financing rate plus 6.0% per year.
Meanwhile, several of Gran Tierra's subsidiaries enter commercial contracts with Trafigura in connection with the new facility. Trafigura will buy crude oil from Gran's producing fields in Colombia. ‘The repayment of the new facility will be made by way of deductions of the price payable by Trafigura for the crude oil delivered under such contracts,’ Gran says.
The facility of up to $150 million consists of an $100 million initial commitment, with a potential option of up to an additional $50 million.
Current stock price: 101.39 pence
12-month change: up from 44.00p
Copyright 2022 Alliance News Limited. All Rights Reserved.