General Announcement::Closing of $500 Million Private Offering of 5.75% Senior Notes

Issuer & Securities

Issuer/ Manager
CANACOL ENERGY LTD.
Securities
CANACOLENE US$500M5.75%281124A - US134808AD63 - PNTB
CANACOLENE US$500M5.75%281124R - USU13518AC64 - YW0B
CANACOLENE US$320M7.25%250503A - US134808AC80 - 8UAB
CANACOLENE US$320M7.25%250503R - USU13518AB81 - 8UBB
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
25-Nov-2021 06:19:37
Status
New
Announcement Sub Title
Closing of $500 Million Private Offering of 5.75% Senior Notes
Announcement Reference
SG211125OTHRQRBW
Submitted By (Co./ Ind. Name)
Canacol Energy Ltd.
Designation
SGX-ST
Description (Please provide a detailed description of the event in the box below)
Further to its news release dated November 16, 2021, Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE) (OTCQX:CNNEF) (BVC:CNEC) is pleased to announce that it has completed its previously announced offering of U.S. $500 million aggregate principal amount of 5.75% senior unsecured notes due 2028 (the Notes ).

Canacol intends to use the proceeds of the Offering to (i) refinance its outstanding 7.250% Senior Notes due 2025 (the 2025 Notes ) pursuant to the Tender Offer and Consent Solicitation described in Canacol s press releases dated November 8, 2021 and November 22, 2021 (the Tender Offer ), (ii) pay the fees and expenses of the Tender Offer, (iii) to refinance certain other existing indebtedness of Canacol, and (iv) for general corporate purposes, including capital expenditures.

By replacing the 2025 Notes, Canacol will benefit from (i) replacing the 2025 Notes that bear an interest rate of 7.250% with the 2028 Notes that bear an interest rate of 5.75%; (ii) a Note indenture that will contain less restrictive covenants; (iii) deferring the maturity date of Canacol s most significant indebtedness by three years; and (iv) additional liquidity to be used towards capital expenditures.

The Notes have been offered and sold only to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act ), to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act and pursuant to certain prospectus exemptions in Canada. The Notes have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

Attachments

2021 11 24 Bond Issuance Closing.pdf
Total size =137K