Pacific Rubiales Closes $250MM Revolving Credi Facility

Pacific Rubiales has closed the syndication of its previously announced US $250 million unsecured revolving credit facility. As a result of the great interest generated among lenders by the facility, as demonstrated by the significant oversubscription, the amount of the facility was increased to US $250 million from the US $200 million initially contemplated. Bank of America Merrill Lynch acted as Global Coordinator and Joint Bookrunner. Banco de Bogota, Banco de Occidente, Banco Santander (Colombia), Bancolombia and Royal Bank of Canada also acted as Bookrunners. BBVA Argentaria and JP Morgan Chase Bank were the Mandated Lead Arrangers while Banco de Credito del Peru and Global Bank Corporation were Arrangers.

The facility will replace existing smaller facilities currently available to the company and will be utilized to support short and medium term revolving credit needs of the company as they may arise in the ordinary course of business. The company does not expect to fully draw down the facility during the 2010 financial year.

Pricing of the facility varies in accordance with the rating assigned to the company's senior debt securities by Standard & Poor's Ratings Group and Fitch Inc. The company will pay commitment fees on the unutilized portion of any outstanding commitments under the facility and regular spread over any disbursed amounts. Based on the company's current rating and expected usage, the commitment fee will be 100 basis points and the applicable margin will be LIBOR+ 325 basis points.

Subject to customary acceleration events set out in the credit agreement, or unless terminated earlier by the company without penalty, repayment of the outstanding principal on the facility will be made in full on the second anniversary of the closing date.


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