Business Context and Reporting Period
Company: Gran Tierra Energy Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 10, 2017
Event: Entry into a Material Definitive Agreement (Ninth Amendment to Credit Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. The primary financial metric disclosed relates to the company's credit facility:
- Borrowing Base: Reaffirmed at $300,000,000.
- Interest Rate Structure:
- LIBOR Option: LIBOR plus a spread ranging from 2.15% to 3.65%.
- Base Rate Option: Base rate plus a spread ranging from 1.15% to 2.65%.
- Spread Determination: Dependent on the Company's Senior Secured Leverage Ratio.
Material Changes Versus Prior Period
The Ninth Amendment modifies the Credit Agreement originally dated September 18, 2015, with the following material changes:
- Maturity Extension: The revolving credit maturity date was extended from October 1, 2018, to November 10, 2020.
- Rate Adjustment: Interest rate spreads were amended to the ranges listed above.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the execution of the amendment to extend liquidity availability and adjust pricing terms based on leverage ratios. It notes that lenders may provide customary investment banking and advisory services for which fees are received.
Risks and Contingencies: The filing does not explicitly detail new risks beyond the standard terms of the credit agreement. The interest cost is contingent upon the Company's ability to maintain specific leverage ratios.
Important Facts for Investor Verification
- Verify the current outstanding balance under the $300 million Borrowing Base.
- Confirm the Company's current Senior Secured Leverage Ratio to determine the applicable interest rate spread.
- Review the full text of the Ninth Amendment (Exhibit 10.1) for covenants and conditions not summarized in this report.
- Monitor the new maturity date of November 10, 2020, for future refinancing needs.