Canacol Energy refinances gas plant loans via $200 million facility

By Susanna Moon

Chicago, June 8 - Canacol Energy Ltd. said it refinanced its gas plant credit facility with a $200 million credit facility led by Scotiabank as the lead arranger and administrative agent.

The company entered into an agreement, through a wholly owned subsidiary, with an initial borrowing base of $85 million, consisting of a $55 million three-year reserve-based revolving facility and a $30 million term facility, according to a company press release.

The borrowing base will be reset semiannually, based on the company's current reserve report, results of operations, the lenders view of the current and forecast commodity prices and the economic environment, the release noted.

Interest on advances under the revolver will be Libor plus 250 basis points to 325 bps, depending on utilization. There is an unused fee of 50 bps.

The terms of the new facility are materially consistent with the current gas plant facility, the company said.

As at March 31, the company had $68.1 million in cash, cash equivalents and restricted cash and $43.7 million of working capital surplus.

The facility provides Canacol with additional financial flexibility to pursue business development opportunities, according to the release.

Citibank is documentation agent.

Based in Calgary, Alta., Canacol Energy is an independent onshore oil exploration company.

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