Canacol Energy Ltd. Announces the Closing of a US $75 Million Senior Secured Term Loan
September 03 2024 - 9:08PM
Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX: CNE;
OTCQX: CNNEF; BVC: CNEC) is pleased to announce that, on September
3, 2024, it entered into a committed 24 month US $75 million senior
secured term loan facility (the “Facility”) with Macquarie Group
(“Macquarie”).
The initial draw on funding is expected to be US
$50 million, with a further commitment of US $25 million available
for a twelve month period should certain production metrics be met.
The Facility bears an annual interest rate of SOFR + 8.0% on drawn
amounts and 2.4% on undrawn amounts during the commitment period.
The Corporation expects to enter a SOFR hedging agreement with
Macquarie fixing the interest rate. The Facility matures on
September 3, 2026, and has a twelve month principal payment grace
period. No prepayments may be made during the first twelve months.
The Facility is secured by all material assets of the
Corporation.
Covenants on the Facility have been largely
harmonized with the Corporation’s existing covenants on its 2028
senior unsecured notes and its senior unsecured revolving credit
facility which matures in February 2027.
As of June 30, 2024, the Corporation had US $43
million of cash, and a leverage ratio of 2.69x being well inside of
its existing leverage ratio covenants of 3.25x (incurrence) and
3.5x (maintenance).
Canacol intends on using the proceeds of the
Facility for general corporate purposes.
In connection with the Facility, Macquarie will
be issued 1,888,448 common share purchase warrants (the
“Warrants”), with each Warrant entitling Macquarie to purchase one
common share of the Corporation at an exercise price equal to the
five (5) day volume weighted average trading price of the common
shares ending on the date hereof. The Warrants will expire three
(3) years after the date of issuance. The Warrants remain subject
to the final approval of the Toronto Stock Exchange.
The entire Credit and Guarantee Agreement will
be posted on www.sedarplus.ca
Gas Sales Update
Realized contractual natural gas sales (which
are gas produced, delivered, and paid for) averaged approximately
161 million standard cubic feet per day (“MMscfpd”) during July,
2024, and approximately 167 MMscfpd during August, 2024.
About Canacol
Canacol is a natural gas exploration and
production company with operations focused in Colombia. The
Corporation's common stock trades on the Toronto Stock Exchange,
the OTCQX in the United States of America, and the Colombia Stock
Exchange under ticker symbol CNE, CNNEF, and CNE.C,
respectively.
Forward-Looking Information and Statements
- This
press release contains certain forward-looking statements within
the meaning of applicable securities law. Forward-looking
statements are frequently characterized by words such as “plan”,
“expect”, “project”, “target”, “intend”, “believe”, “anticipate”,
“estimate” and other similar words, or statements that certain
events or conditions “may” or “will” occur, including without
limitation statements relating to estimated production rates from
the Corporation’s properties and intended work programs and
associated timelines. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The Corporation cannot assure that actual results will be
consistent with these forward looking statements. They are made as
of the date hereof and are subject to change and the Corporation
assumes no obligation to revise or update them to reflect new
circumstances, except as required by law. Information and guidance
provided herein supersedes and replaces any forward looking
information provided in prior disclosures. Prospective investors
should not place undue reliance on forward looking statements.
These factors include the inherent risks involved in the
exploration for and development of crude oil and natural gas
properties, the uncertainties involved in interpreting drilling
results and other geological and geophysical data, fluctuating
energy prices, the possibility of cost overruns or unanticipated
costs or delays and other uncertainties associated with the oil and
gas industry. Other risk factors could include risks associated
with negotiating with foreign governments as well as country risk
associated with conducting international activities, and other
factors, many of which are beyond the control of the Corporation.
Other risks are more fully described in the Corporation’s most
recent Management Discussion and Analysis (“MD&A”) and Annual
Information Form, which are incorporated herein by reference and
are filed on SEDAR at www.sedar.com. Average production figures for
a given period are derived using arithmetic averaging of
fluctuating historical production data for the entire period
indicated and, accordingly, do not represent a constant rate of
production for such period and are not an indicator of future
production performance. Detailed information in respect of monthly
production in the fields operated by the Corporation in Colombia is
provided by the Corporation to the Ministry of Mines and Energy of
Colombia and is published by the Ministry on its website; a direct
link to this information is provided on the Corporation’s
website.
For more information please
contact:Investor RelationsSouth America:
+571.621.1747 IR-SA@canacolenergy.comGlobal:
+1.403.561.1648
IR-GLOBAL@canacolenergy.comhttp://www.canacolenergy.com
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