Business Context and Reporting Period
Company: Gran Tierra Energy Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 20, 2018
Event: Entry into a Material Definitive Agreement regarding the company's credit facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or total debt levels. It specifically addresses the terms of the company's revolving credit facility:
- Facility Maturity Extension: Extended from November 10, 2020, to November 10, 2021.
- Interest Rate Structure (LIBOR Option): LIBOR plus a spread ranging from 1.65% to 3.65%.
- Interest Rate Structure (Base Rate Option): Base rate plus a spread ranging from 0.65% to 2.65%.
- Pricing Determinant: Spreads are dependent on the Company's Senior Secured Leverage Ratio.
Material Changes Versus Prior Period
The primary material change is the amendment of the Credit Agreement originally dated September 18, 2015. The Eleventh Amendment, effective December 20, 2018, modifies the maturity date and interest rate spreads compared to the previous terms of the agreement.
Guidance, Outlook, and Risks
Management Commentary: The filing notes that agents, arrangers, and lenders under the Credit Agreement may provide investment banking, commercial lending, hedging, and financial advisory services to the Company in the ordinary course of business, for which they receive customary fees and commissions.
Risks and Contingencies: The filing does not explicitly detail new risks or contingencies beyond the standard terms of the credit agreement amendment. The full text of the Eleventh Amendment is referenced as Exhibit 10.1 for complete details.
Important Facts for Investor Verification
- Verify the current Senior Secured Leverage Ratio to determine the applicable interest rate spread.
- Review the full text of the Eleventh Amendment (Exhibit 10.1) for covenants and conditions not summarized in this report.
- Confirm the total outstanding balance under the Credit Agreement to assess the impact of the extended maturity date on future liquidity.