Narrative
Full Description
Project narrative
On April 24, 2014, Canacol Energy Ltd. closed an 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. The syndicated loan included 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 increased the previous loan amount by $80 million, raising it from $140 million to $220 million, while maintaining the same terms and repayment schedule. The original loan was signed in April 2013, and included only Credit Suisse, Citibank, Export Development Canada, and Corpbanca (not ICBC) on the syndicate. The loan carries interest at LIBOR plus 4.50%-5.00%, with quarterly interest payments and principal repayable in 15 equal quarterly installments beginning in October 2014. The loan was secured by all of the material assets of Canacol Energy Ltd. The proceeds will be used for capital expenditures in Colombia, transaction costs, and general corporate purposes.
Staff comments
1. Maturity estimated to be 5 years based on 15 quarterly repayments starting Oct 2014. 2. The exact contribution by ICBC to the syndicated loan is unknown. For the time being, it is estimated that each of the 8 members of the syndicate contributed equally.