06:44 AM EDT, 09/04/2024 (MT Newswires) -- Canacol Energy ( CNNEF ) late on Tuesday said it signed a 24-month US$75 million senior secured term loan facility with Macquarie group.

The initial draw on funding is expected to be US$50 million, with a further commitment of US$25 million available for a 12-month period if certain production metrics are met.

The facility bears an annual interest rate of SOFR + 8.0% on drawn amounts and 2.4% on undrawn amounts during the commitment period.

The facility matures on Sept. 3, 2026, and has a 12-month principal payment grace period.

As of June 30, Canacol had US$43 million of cash and a leverage ratio of 2.69x.

Canacol plans to use proceeds from the facility for general corporate purposes.

In connection with the facility, Macquarie will be issued roughly 1.9 common share purchase warrants, with each warrant entitling Macquarie to purchase one Canacol common share at an exercise price equal to the five-day volume weighted average trading price of the common shares.

The warrants will expire three years after the date of issuance and remain subject to final approval of the TSX.

Canacol also reported realized contractual gas sales, or gas produced, delivered and paid for, of about 161 million standard cubic feet per day (MMscfpd) in July and about 167 MMscfpd in August.