TIDMGTE
CALGARY, Alberta, Oct. 23, 2023 (GLOBE NEWSWIRE) -- Gran Tierra
Energy Inc. ("Gran Tierra" or the "Company") (NYSE American:GTE)
(TSX:GTE) (LSE:GTE) today announced the issuance of US$487,590,000
aggregate principal amount of its 9.500% Senior Secured Amortizing
Notes due 2029 (the "New Notes") as part of its previously
announced offers to exchange (such offers, the "Exchange Offers")
the 6.250% Senior Notes due 2025 (the "2025 Notes"), issued by Gran
Tierra Energy International Holdings Ltd., and the 7.750% Senior
Notes due 2027 (the "2027 Notes"), issued by the Company.
Gary Guidry, President and Chief Executive Officer of Gran
Tierra, commented:
"We are very pleased with the successful completion of the
Exchange Offers which we believe is highly beneficial for both Gran
Tierra and our stakeholders. The Company's balance sheet is now
stronger due to an improved amortization schedule, less restrictive
conditions, and overall reduced leverage. The Exchange Offers, in
tandem with our solid operating cash flow, provide additional
financial flexibility and a stronger platform, as the Company
continues to execute its strategy of delivering profitable
production growth, free cash flow generation and value creation for
stakeholders. Our mandate to develop high-value resource
opportunities to deliver top-quartile returns remains unchanged. We
intend to continue to high-grade our portfolio through our
integrated strategy of acquiring, exploring, developing, producing,
and enhancing high-quality oil and gas assets. We appreciate the
support received from our bond investor base as we believe it
demonstrates the underlying confidence in Gran Tierra's producing
assets as well as our business strategy, especially in today's
volatile markets."
Benefits of the Exchange Offers include:
-- Maturities Extension: The issuance of the New Notes results in an
extension of maturity to 2029. The New Notes also reduce Gran Tierra's
refinancing risk by flattening the debt principal repayments by
amortizing the repayments over a longer period. The New Notes' principal
repayment schedule also better aligns with the Company's projected cash
flows.
-- Financial Flexibility: The Exchange Offers unlock capital for strategic
uses and provides additional flexibility on capital allocation including
capital expenditures required for organic growth, mergers and
acquisitions activities, and potential shareholder returns via share
buybacks.
-- Strengthened Balance Sheet and Overall Debt Reduction: The $60 million of
cash deployed as part of the Exchange Offers reduces Gran Tierra's
overall gross debt.
-- Enhanced Liquidity: Combining both the 2025 Notes and the 2027 Notes into
a single series of New Notes with US$487,590,000 aggregate principal
amount enhances trading liquidity for noteholders.
-- Positive Rating Agency View: Rating agencies are taking a positive view
on the credit due to the new senior secured structure, pre-payment of
2025 Notes, and the new amortization profile.
-- Retaining Supportive Existing Bondholder Base: The broad investor base
participation in the Exchange Offers is a clear testament to the market's
confidence in and support of Gran Tierra's strategy.
Cautionary Statement Regarding Forward Looking Statements
This press release contains opinions, forecasts, projections,
and other statements about future events or results that constitute
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, as amended, Section 27A
of the U.S. Securities Act of 1933, as amended (the "Securities
Act"), and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), and financial outlook and forward
looking information within the meaning of applicable Canadian
securities laws (collectively, "forward-looking statements"). The
use of the words "expect," "plan," "can," "will," "should,"
"guidance," "forecast," "signal," "progress," and "believes,"
derivations thereof and similar terms identify forward-looking
statements. In particular, but without limiting the foregoing, this
press release contains forward-looking statements regarding: the
Company's projected cash flow, financial flexibility, expected
financial condition, expected liquidity, and relationship with its
bondholders. The forward-looking statements contained in this press
release reflect several material factors and expectations and
assumptions of Gran Tierra including, without limitation, that Gran
Tierra will continue to conduct its operations in a manner
consistent with its current expectations, pricing and cost
estimates (including with respect to commodity pricing and exchange
rates), and the general continuance of assumed operational,
regulatory and industry conditions in Colombia and Ecuador, and the
ability of Gran Tierra to execute its business and operational
plans in the manner currently planned.
Among the important factors that could cause actual results to
differ materially from those indicated by the forward-looking
statements in this press release are: our operations are located in
South America and unexpected problems can arise due to guerilla
activity, strikes, local blockades or protests; technical
difficulties and operational difficulties may arise which impact
the production, transport or sale of our products; other
disruptions to local operations; global health events; global and
regional changes in the demand, supply, prices, differentials or
other market conditions affecting oil and gas, including inflation
and changes resulting from a global health crisis, the Russian
invasion of Ukraine, or from the imposition or lifting of crude oil
production quotas or other actions that might be imposed by OPEC,
such as its recent decision to cut production and other producing
countries and resulting company or third-party actions in response
to such changes; changes in commodity prices, including volatility
or a prolonged decline in these prices relative to historical or
future expected levels; the risk that current global economic and
credit conditions may impact oil prices and oil consumption more
than we currently predict. which could cause further modification
of our strategy and capital spending program; prices and markets
for oil and natural gas are unpredictable and volatile; the effect
of hedges; the accuracy of productive capacity of any particular
field; geographic, political and weather conditions can impact the
production, transport or sale of our products; our ability to
execute its business plan and realize expected benefits from
current initiatives; the risk that unexpected delays and
difficulties in developing currently owned properties may occur;
the ability to replace reserves and production and develop and
manage reserves on an economically viable basis; the accuracy of
testing and production results and seismic data, pricing and cost
estimates (including with respect to commodity pricing and exchange
rates); the risk profile of planned exploration activities; the
effects of drilling down-dip; the effects of waterflood and
multi-stage fracture stimulation operations; the extent and effect
of delivery disruptions, equipment performance and costs; actions
by third parties; the timely receipt of regulatory or other
required approvals for our operating activities; the failure of
exploratory drilling to result in commercial wells; unexpected
delays due to the limited availability of drilling equipment and
personnel; volatility or declines in the trading price of our
common stock or bonds; the risk that we do not receive the
anticipated benefits of government programs, including government
tax refunds; our ability to comply with financial covenants in its
credit agreement and indentures and make borrowings under any
credit agreement; and the risk factors detailed from time to time
in Gran Tierra's periodic reports filed with the Securities and
Exchange Commission, including, without limitation, under the
caption "Risk Factors" in Gran Tierra's Annual Report on Form 10-K
for the year ended December 31, 2022 filed February 21, 2023 and
its other filings with the SEC. These filings are available on the
SEC website at http://www.sec.gov and on SEDAR at
www.sedar.com.
The forward-looking statements contained in this press release
are based on certain assumptions made by Gran Tierra based on
management's experience and other factors believed to be
appropriate. Gran Tierra believes these assumptions to be
reasonable at this time, but the forward-looking statements are
subject to risk and uncertainties, many of which are beyond Gran
Tierra's control, which may cause actual results to differ
materially from those implied or expressed by the forward-looking
statements. The unprecedented nature of industry volatility may
make it particularly difficult to identify risks or predict the
degree to which identified risks will impact Gran Tierra's business
and financial condition. All forward-looking statements are made as
of the date of this press release and the fact that this press
release remains available does not constitute a representation by
Gran Tierra that Gran Tierra believes these forward-looking
statements continue to be true as of any subsequent date. Actual
results may vary materially from the expected results expressed in
forward-looking statements. Gran Tierra disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law. In addition,
historical, current and forward-looking sustainability-related
statements may be based on standards for measuring progress that
are still developing, internal controls and processes that continue
to evolve, and assumptions that are subject to change in the
future.
The statements related to Gran Tierra's financial performance,
financial position and cash flow may be considered to be
future-oriented financial information or a financial outlook for
the purposes of applicable Canadian securities laws. Financial
outlook and future oriented financial information contained in this
press release about prospective financial performance, financial
position or cash flows are provided to give the reader a better
understanding of the potential future performance of the Company in
certain areas and are based on assumptions about future events,
including economic conditions and proposed courses of action, based
on management's assessment of the relevant information currently
available, and to become available in the future.
Actual results may differ significantly from the projections
presented herein. The actual results of Gran Tierra's operations
for any period could vary from the amounts set forth in these
projections, and such variations may be material. See above for a
discussion of the risks that could cause actual results to vary.
The future-oriented financial information and financial outlooks
contained in this press release have been approved by management as
of the date of this press release. Readers are cautioned that any
such financial outlook and future-oriented financial information
contained herein should not be used for purposes other than those
for which it is disclosed herein. The Company and its management
believe that the prospective financial information has been
prepared on a reasonable basis, reflecting management's best
estimates and judgments, and represent, to the best of management's
knowledge and opinion, the Company's expected course of action.
However, because this information is highly subjective, it should
not be relied on as necessarily indicative of future results.
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. together with its subsidiaries is an
independent international energy company currently focused on oil
and natural gas exploration and production in Colombia and Ecuador.
The Company is currently developing its existing portfolio of
assets in Colombia and Ecuador and will continue to pursue
additional new growth opportunities that would further strengthen
the Company's portfolio. The Company's common stock trades on the
NYSE American, the Toronto Stock Exchange and the London Stock
Exchange under the ticker symbol GTE. Additional information
concerning Gran Tierra is available at www.grantierra.com. Except
to the extent expressly stated otherwise, information on the
Company's website or accessible from the Company's website or any
other website is not incorporated by reference into, and should not
be considered part of, this press release. Investor inquiries may
be directed to info@grantierra.com or (403) 265-3221.
Gran Tierra's filings with (i) the SEC are available on the SEC
website at http://www.sec.gov, (ii) the Canadian securities
regulatory filings are available on SEDAR at http://www.sedar.com,
and (iii) the UK regulatory filings are available on the National
Storage Mechanism (the "NSM") website at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
For investor and media inquiries please contact:
Gary Guidry,
President & Chief Executive Officer
Ryan Ellson,
Executive Vice President & Chief Financial Officer
Rodger Trimble,
Vice President, Investor Relations
+1-403-265-3221
info@grantierra.com
SOURCE Gran Tierra Energy Inc.
(END) Dow Jones Newswires
October 23, 2023 06:00 ET (10:00 GMT)
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