facebook
linkedin
twitter
About Us
  • BFSI
  • Energy
  • Infocom
  • Mining
  • Venture
  • Industry
  • Travel
  • Civic
  • Food, Health, Ag
  • Real Estate
  • Responsibility
  • Economy
  • Law & Justice
  • Interview
  • Analysis

Frontera Energy Completes Consent Solicitation to Amend Indenture for 2023 Senior Notes

Posted On November 26, 2018
By : Editorial Staff
Comment: Off
Tag: canada, fitch ratings, Frontera Energy, Frontera Energy Corporation, Gabriel De Alba, Natural Resources, oil, pacific exploration and production, PACIFIC RUBIALES, toronto, TSX: FEC

Frontera Energy Corporation (TSX: FEC) has completed the consent solicitation for amendments to the indenture governing its $350 million USD of senior notes due 2023.

According to the Toronto-based company, it received the consent of an overwhelming majority (91.2%) of the holders of the outstanding notes.

“These amendments give the company flexibility to use existing cash resources and projected future cash resources to implement measures expected to enhance shareholder value.” – Frontera Energy

The company said that it expects to make the consent fee payment to consenting holders on November 28 after the amendments become effective. All holders of the 9.7% notes will “be bound by the amendments,” said the firm, including any holders that did not give consent.

“These amendments give the company flexibility to use existing cash resources and projected future cash resources to implement measures expected to enhance shareholder value,” said Frontera Energy in a statement.

“These measures may include accelerating or increasing share buyback programs, dividend payments, and investments,” added the firm. “No decision has been made by the company to make any such payments at this time, other than its existing share buy-back program.”

Despite the optimism, credit rating agency Fitch Ratings has warned that the move is a “potential credit negative” given that it allows for large payouts to shareholders.

Looking at Frontera’s net income deficit and “low” reserve life levels “relative to its peers,” the New York-based rating agency believes Frontera needs to invest more into its operations. Thus, it concluded in its analysis that the “company’s credit quality could begin to deteriorate as a result of an increase in distributions to shareholders.”

Nevertheless, Gabriel de Alba, chairman of the board of directors of Frontera Energy, said that the move will give the firm more flexibility and improve cash flow.

“The successful consent solicitation is an overwhelming vote of confidence by our bondholders in Frontera’s credit profile and long-term outlook for free cash flow,” he said. “With the enhanced capital allocation flexibility it gives the company, this consent opens new avenues for the board to increase value for Frontera shareholders.

He added that, “while continuing to make disciplined decisions and taking actions to close the stock’s valuation gap, we can now move forward with evaluating additional strategic initiatives designed to enhance shareholder returns, with the full support of our bondholders.”

DON'T MISS OUT: The only English-language Colombia news that's strictly business, markets, & investment!
Join global executives & investors by subscribing to our FREE weekly updates
I agree to have my personal information transferred to MailChimp ( more information ) DISCLAIMER: Protección de Datos Personales Artículo 15 de la Constitución Política de Colombia, ley 1581 de 2012 y decreto 1377 de 2013.
We will never spam you or share your email address ¡Nunca Jamás!

Share the news!

  • Facebook
  • Twitter
  • Print
  • WhatsApp
  • LinkedIn
  • Skype

Related

Share your thoughts:

comments

About the Author
Finance Colombia is the only English-language publication dedicated to Colombia’s economy, business world, and financial sector.
  • google-share
Previous Story

Emerging Markets Will Continue to Face Sovereign Pressure in 2019, Says Fitch

Next Story

Cargill Continues Investing in Colombia with Campollo Purchase

Related Posts

medical marijuana cannabis khiron life sciences pharmacielo new colombia resources (Credit: futurefilmworks / Pixabay)
0

Khiron Life Sciences Publishes Medical Study Showing Cannabis Efficacy In Pain Treatment

Posted On April 5, 2022
, By Loren Moss
Wilson Ruiz Orejuela, Minister of Justice and Law, and Juan Gonzalo Botero Botero, Deputy Minister of Agricultural Affairs of the Ministry of Agriculture and Rural Development join President Ivan Duque at the podium and health minister Dr. Fernando Ruíz Gómez announcing the legislation.
0

Colombian Government Approves Domestic Commercialization Of Non-Psychoactive Cannabis Products

Posted On April 5, 2022
, By Loren Moss
0

Frontera Energy Reports Full Year Earnings Up 117%

Posted On March 3, 2022
, By Loren Moss




Search

RECENT

POPULAR

COMMENTS

The World’s 50 Best Restaurants today reveals Leonor Espinosa of Leo, Bogotá, as the 2022 winner of The World’s Best Female Chef Award, sponsored by Nude Glass

Colombian Leonor Espinosa Named "World's Best Female Chef"

Posted On May 18, 2022
Grand Bahamas photo © Loren Moss

Bahamas Seeks Air Connectivity With Colombia

Posted On May 18, 2022
Roberto Kriete, avianca's main shareholder and chairman of the Board of Directors.

Shareholders Of Viva, Avianca & Gol Announce The Creation Of Abra Group To Dominate South American Skies

Posted On May 11, 2022
Colombia’s attorney general charged Russian national Sergein Vagin and six other people

Alleged Russian Spy Charged…With Running A Gambling Mafia

Posted On April 12, 2022

Viva Launches Nonstop Routes To Buenos Aires, Argentina From Medellín & Bogotá, Colombia

Posted On April 12, 2022

Romanian Cybercriminal Mihai Ionut Paunescu Captured In Colombia

Posted On June 29, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Court Blocks Colombia’s $370 Million USD Emergency Loan To Bankrupt Avianca Airlines

Posted On September 12, 2020

Deadly Riots & Protests Against Police Brutality Break Out Across Colombia

Posted On September 10, 2020

AVIANCA IS BANKRUPT

Posted On May 10, 2020

[…] damn what she said. She and...

Posted On April 4, 2022

[…] by short sellers seeking to...

Posted On March 22, 2022

[…] no longer travel freely...

Posted On March 8, 2022

[…] Duque’s administration will...

Posted On March 8, 2022

[…] See also: 13 Police Injured In...

Posted On March 3, 2022

Watch This!

Consider Advertising With Us

Click here to visit Expat Group's English site

Subscribe Free

don't forget to include "http://"
* = required field
Your Background / Function








unsubscribe from list

RECENT

POPULAR

COMMENTS

The World’s 50 Best Restaurants today reveals Leonor Espinosa of Leo, Bogotá, as the 2022 winner of The World’s Best Female Chef Award, sponsored by Nude Glass

Colombian Leonor Espinosa Named "World's Best Female Chef"

Posted On May 18, 2022
Grand Bahamas photo © Loren Moss

Bahamas Seeks Air Connectivity With Colombia

Posted On May 18, 2022
Roberto Kriete, avianca's main shareholder and chairman of the Board of Directors.

Shareholders Of Viva, Avianca & Gol Announce The Creation Of Abra Group To Dominate South American Skies

Posted On May 11, 2022

Romanian Cybercriminal Mihai Ionut Paunescu Captured In Colombia

Posted On June 29, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Deadly Riots & Protests Against Police Brutality Break Out Across Colombia

Posted On September 10, 2020

[…] damn what she said. She and...

Posted On April 4, 2022

[…] by short sellers seeking to...

Posted On March 22, 2022

[…] no longer travel freely...

Posted On March 8, 2022

Watch This!

Contact Us (Click the image):

Pages

  • About Us
  • Colombia Events, Conferences, Festivals and Important Dates
  • Contact Us
  • main
  • Media Partnerships
  • Privacy Policy
  • Search Results
  • Whatsapp test page
Copyright 2014-2020 Finance Colombia All Rights Reserved. We may earn commissions from qualifying purchases.
Posting....
WhatsApp us