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Frontera Energy Corporation Updates Tender Offer Details for 2028 Senior Notes

Frontera Energy Corporation (TSX: FEC) has made noteworthy changes to its previously announced cash tender offer and consent solicitation regarding its outstanding 7.875% Senior Notes due in 2028. These modifications reflect the company's continued efforts to enhance engagement with note holders while optimizing the financial structure.

Key Changes to the Tender Offer

As of the latest update, the company disclosed that the maximum tender amount has been adjusted upward from U.S.$65 million to U.S.$80 million. Concurrently, the consent payment for holders who validly provide their consents on or before 5 PM New York City time on June 9, 2025, has been increased from U.S.$15.00 to an amount totaling U.S.$8 million. This revised consent payment will be allocated on a pro-rata basis among all validly consenting and tendering note holders.

The updated offer emphasizes a new maximum tender consideration of U.S.$720.00 for each U.S.$1,000 principal amount of notes that are validly tendered by the extended early tender deadline and accepted for purchase. It aims to reward proactive engagement among note holders, providing both enhanced minimum offers and participation incentives.

Details Surrounding Consent Payments and Participation

The total pro-rata consent payment is expected to yield a value between U.S.$20.70 and U.S.$41.50 per each U.S.$1,000 principal amount of notes, depending on the percentage of notes that are acquired through the offer or consent solicitation. To this effect, a comprehensive table has been included to guide holders in estimating potential earnings from their involvement.

For instance, if 50% of the notes are tendered, the approximate consent payment per note could rise to about U.S.$41.50, resulting in a combined total of U.S.$761.50 including the amended tender consideration. Conversely, if participation remains minimal at lower thresholds, these payouts would proportionately decrease.

Additionally, holders who validly tender their notes but whose submissions cannot be accepted due to oversubscription will still receive a share of the amended consent payment—demonstrating Frontera's commitment to all participating stakeholders.

Operational Terms and Conditions

It is important to note that holders must continue to comply with the existing terms and conditions as outlined in the initial Offer to Purchase. Notably, the company retains the discretion to amend or terminate the offer as deemed necessary, ensuring flexibility amidst market conditions.

Settlement for all validly tendered notes and consents is projected for June 11, 2025, contingent on meeting specified conditions within the Offer to Purchase framework. Given the urgency of these updates, the company underscores the importance of prompt participation from note holders to enhance their financial positions amid evolving market dynamics.

About Frontera Energy Corporation

Frontera Energy is a well-established player in the South American oil and gas sector, involved extensively in the upstream and midstream segments across Colombia, Ecuador, and Guyana. The company's diversified portfolio ensures a robust market standing while striving to conduct operations responsibly in alignment with social and environmental imperatives.

Overall, these amendments not only aim to strengthen Frontera's balance sheet but also foster deeper relationships with its investors. For more detailed information on the tender offer and to stay updated, note holders are encouraged to visit Frontera’s official communications and public disclosures.