Canacol Energy Signs $140M Long-Term Secured Credit Agreement

Canacol Energy Ltd (TSX:CNE, BVC:CNEC) announced that it has entered into a credit agreement in the amount of US $140 million senior secured 5-year loan with a group of banks led by Credit Suisse along with Citibank, Corpbanca, and Export Development Canada.

As quoted in the press release:

Proceeds from the term loan will be used for: a) repayment of principal (US$ 45 million) and accrued interest outstanding under the Corporation’s existing term loan used for the acquisition of Shona Energy Company, Inc.; b) repayment of principal (US$ 31.1 million) and accrued interest outstanding under the Corporation’s existing syndicated credit facility led by Scotiabank; c) future capital expenditures related to development activities in Colombia and Ecuador; and d) costs of the transaction and for other general corporate purposes.

Click here to read the full Canacol Energy Ltd (TSX:CNE, BVC:CNEC) press release.