General Announcement::Canacol Energy Ltd. Announces Closing of New Revolving Credit Facility

Issuer & Securities

Issuer/ Manager
CANACOL ENERGY LTD.
Securities
CANACOLENE US$500M5.75%281124A - US134808AD63 - PNTB
CANACOLENE US$500M5.75%281124R - USU13518AC64 - YW0B
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
22-Feb-2023 20:00:11
Status
New
Announcement Sub Title
Canacol Energy Ltd. Announces Closing of New Revolving Credit Facility
Announcement Reference
SG230222OTHRP0BX
Submitted By (Co./ Ind. Name)
Canacol Energy
Designation
Canacol Energy
Description (Please provide a detailed description of the event in the box below)
Canacol Energy Ltd. Announces Closing of New Revolving Credit Facility

CALGARY, ALBERTA - (February 22, 2023) - Canacol Energy Ltd. ( Canacol or the Corporation ) (TSX: CNE; OTCQX: CNNEF; BVC: CNEC) is pleased to provide the following update on certain new and existing credit facilities. All amounts are in United States dollars ( USD ) except as otherwise indicated.

On July 31, 2020, the Corporation entered into a $75 million senior unsecured bridge term loan ( Bridge Loan ) and a $46 million senior unsecured revolving credit facility ( RCF ) totaling $121 million (collectively, the Expiring Facilities ) with a syndicate of banks. The Bridge Loan bore an annual interest rate of LIBOR + 4.25%, and the RCF bore an annual interest rate of LIBOR + 4.75%. The Expiring Facilities were set to expire on July 31, 2023. On February 17, 2023, the Expiring Facilities, which had a total of $25 million drawn, were repaid and terminated and replaced by a new $200 million senior unsecured revolving credit facility ( New Facility ).

Jason Bednar, CFO of Canacol, commented: As at December 31, 2022, Canacol maintained its strong balance sheet and liquidity including approximately $59 million of cash, with our robust 2023 capital and dividend programs being funded through existing cash position and operating cash flows. Adding to the Corporation s existing financial flexibility, we have replaced the Expiring Facilities as well as increased the total available credit by $79 million which will allow Canacol to pursue corporate opportunities should they transpire. The New Facility also has the added benefits of an expiry date of February 17, 2027 thus extending the credit term well beyond the Corporation s planned new Medellin pipeline start date and is administratively more efficient.

Attachments

22.02.2023 - Canacol Energy Ltd. Announces Closing of New Revolving Credit Facility.pdf
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