(Alliance News) - PetroTal Corp on Tuesday announced the successful completion of the placement of a USD100 million bond issue.
Petrotal shares were up 7.4% at 14.50 pence each in London on Tuesday morning.
The oil & gas development and production company focused on Peru said it completed the placement of a 3-year USD100 million senior secured bond with a fixed coupon of 12% and a borrowing limit of USD125 million.
The bond issue was announced in early January.
PetroTal intends to use the proceeds to repay all outstanding loans, to finance the continued development of the Bretana oil field in Peru, to provide support for crude oil hedging transactions and to finance potential acquisitions.
Chief Executive Manuel Zuniga-Pflucker said: "PetroTal is pleased with the investor interest in this USD100 million inaugural bond offering. This financing significantly enhances PetroTal's liquidity and will immediately lead to a return to development activity at the Bretana oil field, with the next well expected to commence drilling by the end of the first quarter of 2021. Additionally, the bond offering provides PetroTal with capital that enables us to pursue synergistic and accretive transactions to diversify the Company's operations. As promised to our shareholders, all this will allow PetroTal to exit this pandemic crisis stronger than before."
By Greg Roxburgh; gregroxburgh@alliancenews.com
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PetroTal (PTAL)