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CALGARY, Alberta, September 03, 2024 (GLOBE NEWSWIRE) – Canacol Energy Ltd. , 2024, is entering into a US$75 million senior secured term loan facility (the “Facility”) with Macquarie Group (“Macquarie”).
The initial draw for funding is expected to be US$50 million, with a further commitment of US$25 million available for a twelve-month period if certain production metrics are met. The facility carries an annual interest rate of SOFR + 8.0% for amounts drawn and 2.4% for amounts not drawn during the commitment period. The Corporation expects to enter into a SOFR hedging agreement with Macquarie to fix interest rates. The facility matures on September 3, 2026, and has a twelve-month principal payment grace period. No prepayments can be made during the first twelve months. The facility is secured by all of the Company’s material assets.
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The covenants in the Facility are substantially in line with the covenants the Corporation has in respect of its 2028 senior unsecured notes and senior unsecured revolving credit facility maturing in February 2027.
As of June 30, 2024, the Corporation has US$43 million in cash, and a leverage ratio of 2.69x in which the leverage ratio agreement is 3.25x (incurrence) and 3.5x (maintenance).
Canacol intends to use 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 (“Warrants”), with each Warrant entitling Macquarie to purchase one common share of the Corporation at an exercise price equal to the five (5) day volume weighted average. The trading price of the common stock at the close on that date. Warrants will expire three (3) years after the date of issue. The warrants remain subject to final approval by the Toronto Stock Exchange.
All Credit and Guarantee Agreements will be posted at www.sedarplus.ca
Gas Sales Update
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Contractual natural gas sales (ie gas produced, delivered, and paid for) averaged approximately 161 million standard cubic feet per day (“MMscfpd”) during July, 2024, and approximately 167 MMscfpd during August, 2024.
About Canacol
Canacol is a natural gas exploration and production company with operations focused on Colombia. The Corporation’s common stock trades on the Toronto Stock Exchange, the OTCQX in the United States, and the Colombian Stock Exchange under the ticker symbols CNE, CNNEF, and CNE.C.
Forward-Looking Information and Statements
- This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are often characterized by words such as “plan”, “expect”, “project”, “target”, “intend”, “believe”, “anticipate”, “estimate” and similar words, or statements that certain events or conditions “may” or “will” occur, including without limitation statements relating to the estimated production rate of the Corporation’s property and the intended work program and associated timeline. Forward-looking statements are based on the opinions and estimates of management on the date the statements are made and are subject to various risks and uncertainties and other factors that may cause actual events or results to differ materially from those described in the forward-looking statements. The Corporation cannot guarantee that actual results will be consistent with forward-looking statements. It is made as of that date and is subject to change and the Corporation has no obligation to amend or update it to reflect new conditions, except as required by law. The information and guidance provided herein supersedes and supersedes any forward-looking information provided in previous disclosures. Prospective investors should not rely too much on forward looking statements. These factors include risks inherent in the exploration and development of crude oil and natural gas properties, uncertainties inherent in the interpretation of drilling results and other geological and geophysical data, fluctuating energy prices, potential cost or cost overruns or unanticipated delays and other uncertainties related to the oil and gas industry. Other risk factors may include risks related to negotiations with foreign governments as well as country risks related to international activities, and other factors, many of which are beyond the Corporation’s control. Other risks are more fully described in the Management’s Discussion and Analysis (“MD&A”) and the Corporation’s most recent Annual Information Form, which are incorporated herein by reference and filed on SEDAR at www.sedar.com. The average production figure for a given period is derived using the arithmetic mean of fluctuating historical production data for the entire period indicated and, thus, does not represent a constant level of production for that period and is not an indicator of future production performance. Detailed information on monthly production in the fields operated by the Corporation in Colombia is provided by the Corporation to the Ministry of Mines and Energy of Colombia and published by the Ministry on its website; A direct link to this information is available on the Corporation’s website.
For more information contact:
Investor Relations
South America: +571.621.1747 IR-SA@canacolenergy.com
Global: + 1.403.561.1648 IR-GLOBAL@canacolenergy.com
http://www.canacolenergy.com
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