CALGARY, ALBERTA--(Marketwired - Apr 24, 2014) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (CNE.TO)(CNNEF)(BVC:CNEC) is pleased to announce that it has closed its previously announced upsizing of its existing senior secured term loan with a syndicate of banks led by Credit Suisse as Lead Arranger, Sole Bookrunner and Administrative Agent, and including Banco Davivienda, Bladex, Corpbanca, Export Development Canada (EDC), and Citi as Mandated Lead Arrangers, and Banco de Occidente and the Industrial and Commercial Bank of China (ICBC) as Arrangers.
The revised term loan resulted in the upsizing of the previous term loan by US$80 million, from US$140 million to US$220 million, with no changes to the term of the loan or the repayment schedule. Interest is payable quarterly and principal repayable in 15 equal quarterly instalments starting in October 2014. The revised term loan carries interest at LIBOR plus 4.50-5.00% and is secured by all of the material assets of the Corporation. Proceeds from the upsizing will be used for capital expenditures in Colombia, costs of the transaction, and for general corporate purposes.
Canacol is an exploration and production company with operations focused in Colombia and Ecuador. The Corporation's common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbols CNE, CNNEF, and CNEC, respectively.
This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to estimated production rates from the Corporation's properties and intended work programs and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward-looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation.