- Gran Tierra Energy (GTE, Financial) secures a new US$75 million credit facility, enhancing liquidity.
- The facility includes a 36-month maturity with an option to prepay without penalties.
- Interest is based on Term Secured Overnight Financing Rate plus a 4.50% margin.
Gran Tierra Energy Inc. (GTE) has announced the successful acquisition of a new US$75 million reserve-based lending facility, utilized through its subsidiary Gran Tierra Energy Colombia GmbH. The facility, which matures in 36 months, is designed to enhance the company’s financial flexibility amid current market conditions.
The credit facility offers an annual interest rate based on the Term Secured Overnight Financing Rate (SOFR) with an additional margin of 4.50%. Importantly, the agreement includes an option for prepayment without incurring penalties, providing Gran Tierra with strategic financial maneuverability.
This capital is secured by the company’s economic rights over certain contracts and the Colombian commercial establishment of Gran Tierra. Moreover, the facility features an annual redetermination commencing on May 1, 2026, which initially ensures stability for the borrowing base, protecting it from short-term fluctuations.
Gran Tierra Energy, listed on NYSE American under the ticker GTE, anticipates this facility will bolster its capacity to manage volatility in the energy sector while supporting potential growth initiatives and operational flexibility. This move underscores lender confidence in the company’s asset quality and cash flow generation capabilities, even in challenging market conditions.
