Canacol Energy Ltd. (TSX: CNE) on Wednesday announced that it has completed its offering of 5.75% senior unsecured notes due 2028. The offering was for a total aggregate principal amount of US$500 million.
The natural gas company has relayed that net proceeds from the offering are intended to refinance its outstanding 7.250% senior notes due 2025. By effectively replacing the outstanding notes, the firm said it will benefit from indentures with “less restrictive covenants”, deferring its most significant debt by three years, and additional liquidity for capital investments.
The proceeds are also earmarked to refinance other existing indebtedness and for general corporate purposes.
The company expects the offering to close on August 13, 2021, subject to customary closing conditions.
Earlier this month, the firm recorded US$81.9 million in revenue for Q3 2021.
Canacol Energy Ltd. last traded at $3.22 on the TSX.
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