Gran Tierra Energy announces $150 million notes offering in Calgary

Gran Tierra Energy Inc. announced the pricing of an additional $150 million in 9.500% Senior Secured Amortizing Notes due 2029, set to close on September 18, 2024. This offering is part of a private placement aimed at qualified institutional buyers in the U.S. and non-U.S. persons outside the U.S. The proceeds from this offering are intended to finance the cash portion of the acquisition of i3 Energy plc, a public limited company based in England and Wales. Remaining funds will be allocated for general corporate purposes, including exploration, debt repayment, and working capital. The Notes will share the same terms as the previously issued Original Notes, with the exception of the issue date and price. They will be guaranteed by certain subsidiaries of Gran Tierra. The offering is structured to comply with the Securities Act, ensuring that the Notes are not registered and can only be sold under specific exemptions. Gran Tierra's decision to pursue this offering reflects its strategic focus on expanding its operations and enhancing its financial position. The acquisition of i3 Energy plc is a significant move for the company, indicating its commitment to growth in the energy sector. The company aims to leverage the proceeds to strengthen its portfolio and support ongoing projects. As Gran Tierra moves forward with this offering, it faces inherent risks and uncertainties associated with market conditions and the execution of its strategic plans. The company has acknowledged these risks in its filings, emphasizing the importance of careful management and planning to achieve its objectives.