Gran Tierra Energy Inc :
* Gran Tierra Energy Inc. announces strategic US$525 million acquisition of Petrolatina Energy Ltd. in Colombia
* Deal expected to be funded through combination of co’s current cash balance, new $130 million debt facility, and a private placement
* Says acquisition has been unanimously approved by board of directors of Gran Tierra
* Under terms, all remaining shares of Petrolatina are acquired pursuant to provisions of articles of association of co upon closing
* Consideration for deal to consist of initial payment of $500 million at closing, and a deferred payment of $25 million prior to December 31, 2016
* In connection with deal, Gran Tierra has agreed to issue up to 57.8 million subscription receipts priced at $3.00 per subscription receipt
* Entered into commitment letter with Scotiabank, its lead lender, to provide up to $130 million in bridge financing to fund portion of deal
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Further company coverage:
http://www.reuters.com/article/idUSFWN19M11W
Source: Reuters.com