Pacific Rubiales Increases Revolving Credit Facility
Pacific Rubiales has closed the amendment (the "Amendment") to its existing US $250 million unsecured revolving credit facility (the "Revolving Credit Facility"). As a result of the great interest generated amongst the lending syndicate, the amount of the Revolving Credit Facility was increased from the US $250 million initially committed by the lenders in April 2010 to US $350 million. Bank of America Merrill Lynch acted as Global Coordinator and Sole Bookrunner.
The Amendment was limited to the same lenders under the Revolving Credit Facility and, in addition to increasing its amount of the facility from US $250 million to US $350 million, under the terms of the Amendment the Company extended the term of the Revolving Credit Facility to April 2013 and reduced the applicable commitment fees and the applicable margin.
To date, the Company has not drawn down any funds from the Revolving Credit Facility and the Company does not expect to require any proceeds from the Revolving Credit Facility to fund its 2011 capital expenditure budget. The Revolving Credit Facility will be utilized as needed to take advantage of opportunities in the Colombia E&P sector that may become available and to fulfill the Company's business strategy.
The applicable margin and commitment fees of the Revolving Credit Facility will continue to be determined in accordance with the rating assigned to the Company's senior debt securities by Standard & Poor's Ratings Group and Fitch Inc. Based on the Company's current rating and expected usage, the commitment fee will be reduced from 100 bps to 75 bps and the applicable margin from 325 bps to 250 bps over LIBOR.
Subject to customary acceleration events set forth in the credit agreement relating to the Revolving Credit Facility, or unless terminated earlier by the Company without penalty, repayment of outstanding principal on the Revolving Credit Facility will be made in full on April 26, 2013.
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