Sept. 27, 2012
/PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) announced today the closing of a U.S.
revolving credit facility as well as a
peso equivalent revolving credit facility in the amount of U.S.
, Chief Executive Officer of the Company, commented: "These new credit facilities are a major step in our overall strategic business plan. The structure of these new facilities affords us significant advantages over our prior credit lines by increasing our operating flexibility and improving our liquidity. We are proud to report that we had a diverse global syndicate with twenty-three lenders from
the United States
September 13, 2012
, the Company entered into a U.S.
Revolving Credit and Guaranty Agreement (the "
U.S. Dollar Facility
") with a syndicate of international lenders and Bank of America, N.A., as administrative agent. Meta Petroleum Corp., Pacific Stratus Energy Colombia Corp., Pacific Stratus International Energy Ltd., and Rubiales Holdings Corp., each subsidiaries of Pacific Rubiales, are guarantors of the U.S. Dollar Facility.
September 13, 2012
, Meta Petroleum Corp.
Branch and Pacific Stratus Energy Corp.
Branch, entered into a Colombian peso equivalent of U.S.
Revolving Credit Agreement as borrowers (
Contrato de Crédito Rotativo Sindicado
) (the "
Colombian Peso Facility
"), with a syndicate of Colombian lenders and Sociedad Fiduciaria Bogotá, S.A., as
administrative agent. Pacific Rubiales, Pacific Stratus International Energy Ltd. and Rubiales Holdings Corp. are acting as guarantors of the Colombian Peso Facility.
The new credit facilities provide the Company with significant benefits, including: (i) extending the term of our U.S. Dollar Facility from two years to three years; (ii) a broader lender base, which now includes a syndicate of twenty-three lenders instead of eleven lenders; (iii) foreign exchange natural hedging; and (iv) income tax deductibility. The new credit facilities were oversubscribed by more than U.S.
, which reflects lender confidence in the future of the Company and its improved liquidity position.
Proceeds under the U.S. Dollar Facility and the Colombian Peso Facility are available to: (i) repay obligations under its pre-existing U.S.
Revolving Credit Agreement in the amount of U.S.
(which following an advance on
September 21, 2012
has been fully repaid and cancelled); and (ii) finance working capital needs, capital expenditures and other general corporate purposes of the Company and its subsidiaries.
Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as global coordinator and Joint Bookrunner of the U.S. Dollar Facility and as Joint Bookrunner and Structuring Agent of the of the Colombian Peso Facility. Corporación Financiera Colombiana S.A. acted as Joint Bookrunner of the U.S. Dollar Facility and Structuring Agent of the Colombian Peso Facility.