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CALGARY - Gran Tierra Energy Inc . (NYSE American:NYSE:GTE)(TSX:GTE)(LSE:GTE), an energy company specializing in oil and gas exploration and production, has announced the establishment of a new $75 million reserve-based lending facility through its subsidiary, Gran Tierra Energy Colombia GmbH. The credit facility, which was finalized today, is set to mature 36 months from the closing date.
The Calgary-based company highlighted that the new financial arrangement will enhance liquidity and support its operations. According to Ryan Ellson, Chief Financial Officer of Gran Tierra, the credit facility is a reflection of the company’s robust business model and the quality of its assets. "Securing this facility during a period of market volatility is a testament to the quality of our assets, the consistency of our cash flow generation, and the confidence our partners have in Gran Tierra’s strategy," Ellson stated.
The terms of the lending facility include an annual redetermination of the commitment, starting May 1, 2026, with an interest rate based on the Term Secured Overnight Financing Rate plus a margin of 4.50% per annum. Gran Tierra emphasized that the loan provides the option for prepayment without penalty and that all principal, interest, and other payment obligations are due upon the maturity date.
The credit facility is secured by the economic rights over certain contracts and Gran Tierra’s Colombian commercial establishment. This financial move is part of the company’s broader strategy to strengthen its balance sheet, enhance operational flexibility, and deliver long-term value to stakeholders.
This announcement comes at a time when the energy sector has been experiencing fluctuations, underlining the company’s efforts to navigate the volatile market conditions effectively.
The information in this article is based on a press release statement from Gran Tierra Energy Inc.
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