Clifford Chance Advises Frontera on $80M Bond Buyback.
Clifford Chance has advised Frontera Energy on a strategic debt transaction involving a cash tender offer of up to $80 million for its 7.875% senior notes due 2028.
The deal also included a consent solicitation, which enabled Frontera to implement key amendments to the bond’s covenant terms, part of a broader effort to modernize its capital structure.
Backed by strong investor participation, Frontera not only hit its tender cap but also secured the necessary consents to push through proposed changes to the indenture. The move cuts the company’s outstanding notes by more than 20%, trimming its debt load three years ahead of schedule.
Frontera’s CEO, Orlando Cabrales, said the outcome reflects the company’s evolving approach to investor relations and debt management.
“I am pleased to announce that the Company has received (i) the requisite consents to implement the proposed amendments to the terms of the Notes and (ii) validly delivered tenders in excess of the maximum tender amount set forth in the Offer.
"The successful completion of this transaction is an important step for the Company as it modernizes its covenant package to meet today's market needs. The transaction also reduces the Company's Notes by U.S.$80 million (or over 20%) 3 years before maturity, highlighting the Company's commitment to its bondholders."
"These results are proof of Frontera's strategic focus on delivering meaningful bondholder and investor value initiatives. The Company will continue to consider similar investor-focused initiatives in 2025 and beyond."
The tender offer and consent solicitation were initially launched in early May through an Offer to Purchase and Consent Solicitation Statement. Terms and conditions were outlined in that document, which was subsequently updated during the course of the transaction.
Frontera Energy is a Canadian public company primarily focused on exploring, developing, producing, transporting, storing, and selling oil and natural gas throughout South America . Headquartered in Toronto, Ontario, the company holds a diversified portfolio with interests in more than 40 exploration and production blocks across Colombia, Ecuador, Guyana, and Peru .
Its midstream infrastructure includes pipelines and port facilities, most notably a bulk and liquid terminal in Cartagena Bay. Frontera is committed to conducting its business responsibly, emphasizing safety, environmental protection, and community engagement .
Frontera Energy Corporation is listed on the Toronto Stock Exchange under the ticker FEC and operates across Latin America with a focus on oil and gas exploration and production.
Clifford Chance’s team on the deal included partner Hugo Triaca and associates Joyce Moore and David Rondon. Tax advice was led by partner Avrohom Gelber with support from associate Gil Shauly.
Clifford Chance is a global law firm with over a century of history and a presence in 23 countries through 34 offices. A member of the prestigious Magic Circle, the firm is recognized for its deep expertise in banking, corporate law, finance, dispute resolution, and tax. It advises a broad spectrum of clients, including multinational corporations, financial institutions, governments, and not-for-profits by combining international best practices with local market insight. Known for its collaborative culture and forward-thinking approach, Clifford Chance delivers innovative, high-quality legal solutions across every major industry and sector.
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