Canada’s Gran Tierra Energy Inc. completed the acquisition of PetroLatina Energy Ltd. for about $525 million, according to an Aug. 23 press release.
The initial payment of $500 million at closing is subject to closing adjustments, and a deferred payment of $25 million will be made by Dec. 31.
PetroLatina is a private E&P with assets primarily in Colombia’s Middle Magdalena Basin.
Gary Guidry, president and CEO of Gran Tierra, said the acquisition will complement the company’s current reserves and resource base in the Putumayo Basin.
The acquisition was funded through cash on hand; a new $130 million term loan added to the credit facility with Scotiabank as administrative agent; and about $173.5 million in proceeds from the private placement of about 57.83 million subscription receipts priced at $3 each. Also, each of the lenders for the secured revolving credit facility, including Scotiabank, Natixis (New York Branch), Societe Generale, HSBC Bank Canada, Royal Bank of Canada and Export Development Canada, were added.
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