Pacific Rubiales Receives Credit Approvals for Additional $50MM Commitments
Pacific Rubiales has received credit approvals for additional commitments totaling US $50 million from Banco de Bogota and Banco de Occidente, with a participation of US $25 million each, towards a previously announced senior secured revolving credit facility of up to US $250 million. This brings total commitments offered by the various lenders in respect of the facility to US $280 million.
As the facility is currently subject to a borrowing base limit of US $250 million, the company and the lenders involved in the facility are discussing the manner in which to best accommodate commitments from these additional lenders. Subject to the completion of such discussions and the required documentation, the company expects to close on these additional commitments on or about June 12, 2009. The company will only utilize that portion of the facility which it needs to meet its 2009 capital expenditure budget.
The facility is a senior secured revolving credit facility maturing on June 30, 2013, and bears interest at LIBOR plus 5.50%. The company will pay commitment fees of 1.50% on the unutilized portion of any outstanding commitments under the facility. Subject to customary acceleration events set out in the credit agreement executed among the parties, or unless terminated earlier by the company without penalty, repayment of outstanding principal on the facility will be made in equal quarterly installments following the second anniversary of the closing date.
The company is being advised on the financing by Endeavour Financial International Corporation.
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