08:15 AM EDT, 05/15/2025 (MT Newswires) -- Frontera Energy ( FECCF ) late on Wednesday said it closed the recapitalization of its ODL interest through a new US$220 million non-recourse, secured loan.

The company said its subsidiary, Frontera Pipeline Investment and a syndicate of lenders led by Macquarie Group signed an amended and restated credit agreement by which the lenders agreed to increase the amounts available in the original credit agreement to US$220 million, guaranteed by Frontera ODL Holding, the parent company of Frontera Pipeline Investment.

A statement noted that the US$220 million recapitalization facility is supported exclusively by the cash flows from the company's interest in Oleoducto de los Llanos Orientales S.A. and is non-recourse to Frontera. The company said its subsidiary met all the required preconditions of the recapitalization facility and that the additional amounts under the transaction have been funded to the company.

The company said it expects to use a portion of the approximately US$115 million net proceeds of the recapitalization facility to make an offer to all shareholders to repurchase common shares pursuant to a substantial issuer bid, as previously announced on May 9.