Gran Tierra Energy Seeks Consent for $479M Notes to Facilitate Sale of Colombia and Ecuador Assets
Gran Tierra Energy (GTE) has launched a consent solicitation covering $479.35 million in senior secured notes due 2031, seeking approval from at least half of the holders for amendments that would allow Maurel & Prom Andina S.A.S to assume obligations upon closing its planned sale of Colombia and Ecuador operations. The proposed terms preserve coupon rates, payment schedules, and collateral pledges over key subsidiaries in those regions but require creditors to waive certain protections like debt-coverage tests and change-of-control clauses. The transaction is part of a broader $1.33 billion asset disposal that could leave the remaining company with no debt after redeeming its 2027 notes. This would enhance financial flexibility for GTE’s Canadian operations and exploration interests in Azerbaijan, though completion depends on shareholder approval, regulatory clearances, and other creditor consents. Creditors are being offered a small incentive of $2.50 per $1,000 principal if they consent by September 22 (extendable). However, the concessions made to creditors raise questions about whether the revised terms adequately compensate for reduced protections.
