S&P rates Frontera Energy notes BB-

S&P said it assigned its BB- issue-level rating to Frontera Energy Corp.’s (BB-/stable/--) $500 million senior unsecured notes due 2023.

The company will use proceeds to repay the existing 2021 secured exit notes, as well as for capital expenditures and investments.

The notes benefit from the guarantees of Frontera Energy Colombia SA, Pacific Stratus Energy del Peru SA and Pacific Midstream Holding Co., all of which generate more than 90% of the company's EBITDA.

“Our ratings on Frontera reflect its position as the largest independent oil and gas operator in Colombia, even after it returned the Rubiales field after the concession to operate it has expired,” S&P said in a news release. “However, Frontera is significantly smaller than its Colombian peer, Ecopetrol SA (BBB-/stable/--), and global peers in terms of production and reserves.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.