BRIEF-Gran Tierra Energy Inc. announces strategic US$525 million acquisition of Petrolatina Energy

Fri Jul 1, 2016 5:49am EDT
 
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July 1 (Reuters) - Gran Tierra Energy Inc :

* Gran Tierra Energy Inc. announces strategic US$525 million acquisition of Petrolatina Energy Ltd. in Colombia

* Deal expected to be funded through combination of co's current cash balance, new $130 million debt facility, and a private placement

* Says acquisition has been unanimously approved by board of directors of Gran Tierra

* Under terms, all remaining shares of Petrolatina are acquired pursuant to provisions of articles of association of co upon closing

* Consideration for deal to consist of initial payment of $500 million at closing, and a deferred payment of $25 million prior to december 31, 2016

* In connection with deal, Gran Tierra has agreed to issue up to 57.8 million subscription receipts priced at $3.00 per subscription receipt

* Entered into commitment letter with Scotiabank, its lead lender, to provide up to $130 million in bridge financing to fund portion of deal

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