HOUSTON: PetroTal Corp. has successfully completed the placement of a 3-year US $100 million senior secured bond (as announced on January 12, 2021) with a fixed coupon of 12% and a borrowing limit of $125 million.
PetroTal intends to use the net proceeds from the Bond to repay all existing outstanding loans (in particular the restructured derivative liability with Petroperu, details of which were announced on January 19, 2021), to finance the continued development of the Bretana oil field, to provide support for crude oil hedging transactions, and to finance potential acquisitions.
The Bond is expected to close on or about February 16, 2021, subject to customary closing conditions.
Pareto Securities acted as sole bookrunner and manager of the bond issue.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented: “PetroTal is pleased with the investor interest in this $100 million inaugural bond offering. This financing significantly enhances PetroTal’s liquidity and will immediately lead to a return to development activity at the Bretana oil field, with the next well expected to commence drilling by the end of Q1 2021.
Additionally, the bond offering provides PetroTal with capital that enables us to pursue synergistic and accretive transactions to diversify the Company’s operations. As promised to our shareholders, all this will allow PetroTal to exit this pandemic crisis stronger than before.”
PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. www.petrotal-corp.com