Alvopetro unit arranges $20-million (U.S.) loan

Executive Summary

• Alvopetro Energy Ltd.’s subsidiary secured a US‑$20 million two‑year fixed‑rate credit facility with Itau BBA International PLC.
• The loan bears 7% interest, has a 12‑month grace period, and will be repaid in quarterly installments from 30 Nov 2026 to 29 Nov 2027.
• Proceeds are earmarked for planned capital programs in Brazil and Western Canada and for general corporate purposes, enhancing financial flexibility for high‑return growth projects.

Key Details

• Loan Amount: US$20 million.
• Lender: Itau BBA International PLC (with standby letter of credit from Itau Unibanco SA).
• Term & Repayment: Two‑year term; 12‑month grace period; quarterly repayments beginning 30 Nov 2026, final payment 29 Nov 2027.
• Interest Rate: Fixed 7% per annum, payable quarterly, inclusive of all applicable charges and fees.
• Guarantees: Alvopetro entered a guarantee agreement covering obligations under both the credit facility and the standby letter of credit.
• Use of Proceeds: Finance planned capital programs in Brazil and Western Canada; general corporate purposes.
• Covenants: Includes customary financial covenants related to dividend payments, not expected to affect current stakeholder return model.
• Executive Comment: CEO Corey C. Ruttan highlighted the facility’s role in providing “significant additional financial flexibility” to accelerate high‑rate‑of‑return growth opportunities.

Notable Quotes

“This credit facility provides Alvopetro with significant additional financial flexibility, allowing us to accelerate our capital programs focused on high-rate-of-return growth opportunities in Brazil and the Western Canadian sedimentary basin.” – Corey C. Ruttan, President & CEO.