Frontera Energy enters $120-million deal with Chevron

Executive Summary

• Frontera Energy Corp.'s Colombian subsidiary has entered into a $120 million prepayment and commercial agreement with Chevron Products Company.
• The agreement provides an initial advance of $80 million, with an option to request an additional $40 million advance for up to six months.
• Proceeds will be used to manage working capital and enhance liquidity, replacing an existing agreement expiring in January 2026.

Key Details

• Total Agreement Value: $120 million.
• Initial Advance: $80 million received immediately.
• Optional Advance: Up to $40 million available for a period of up to six months on a fully committed basis.
• Repayment Terms:
  • Subject to a financial discount calculated at the Secured Overnight Financing Rate (SOFR) plus 4.25% per annum.
  • Repayment commences following a six-month grace period.
• Use of Proceeds: To manage working capital flows and enhance the company's liquidity position.
• Duration/Replacement: The agreement replaces an existing prepayment agreement that expires at the end of January 2026.
• Counterparty: Chevron Products Company.

Notable Quotes

• None provided in the text.