CALGARY, Alberta, Sept. 03, 2024 (GLOBE NEWSWIRE) -- 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 ...
