GeoPark Successfully Completes a $550 Million Notes Offering and Refinances More Than 80% of its Outstanding Notes Due 2027
GeoPark (NYSE: GPRK) has successfully completed a $550 million senior notes offering due 2030, using part of the proceeds to repurchase $405.3 million of its outstanding notes due 2027. The new notes, rated B+ by S&P and Fitch, carry an 8.750% coupon with semi-annual interest payments and will mature on January 31, 2030.
The offering was oversubscribed by approximately 2 times with more than 120 investors from the United States, Europe, Asia and Latin America participating. This refinancing transaction extends GeoPark's average debt life to 4.6 years, representing a 2.6-year extension. Following the transaction, GeoPark's notes outstanding include $94.7 million due 2027 and $550 million due 2030.
GeoPark (NYSE: GPRK) ha completato con successo un'offerta di nota senior da 550 milioni di dollari con scadenza nel 2030, utilizzando parte del ricavato per riacquistare note per 405,3 milioni di dollari in scadenza nel 2027. Le nuove note, classificate B+ da S&P e Fitch, offrono un coupon dell'8,750% con pagamenti di interessi semestrali e scadranno il 31 gennaio 2030.
L'offerta è stata sovrascritta di circa 2 volte, con la partecipazione di oltre 120 investitori provenienti dagli Stati Uniti, Europa, Asia e America Latina. Questa operazione di rifinanziamento estende la vita media del debito di GeoPark a 4,6 anni, rappresentando un'estensione di 2,6 anni. Dopo la transazione, le note in circolazione di GeoPark comprendono 94,7 milioni di dollari scadenti nel 2027 e 550 milioni di dollari scadenti nel 2030.
GeoPark (NYSE: GPRK) ha completado con éxito una oferta de notas senior de 550 millones de dólares con vencimiento en 2030, utilizando parte de los ingresos para recomprar 405,3 millones de dólares de sus notas existentes con vencimiento en 2027. Las nuevas notas, calificadas como B+ por S&P y Fitch, tienen un cupón del 8,750% con pagos de intereses semestrales y vencerán el 31 de enero de 2030.
La oferta fue sobresuscrita aproximadamente 2 veces, con más de 120 inversionistas de Estados Unidos, Europa, Asia y América Latina participando. Esta transacción de refinanciamiento extiende la vida promedio de la deuda de GeoPark a 4,6 años, lo que representa una extensión de 2,6 años. Después de la transacción, las notas en circulación de GeoPark incluyen 94,7 millones de dólares que vencen en 2027 y 550 millones de dólares que vencen en 2030.
GeoPark (NYSE: GPRK)는 2030년 만기 5억 5천만 달러 규모의 선순위 노트 발행을 성공적으로 완료했으며, 수익금의 일부로 2027년 만기 채권 4억 5천3백만 달러를 재매입했습니다. 새 노트는 S&P와 Fitch에서 B+ 등급을 받았으며, 8.750%의 쿠폰을 제공하고 반기별 이자 지급이 이루어지며 2030년 1월 31일 만기입니다.
이번 발행은 약 2배 초과 구독되었으며, 미국, 유럽, 아시아 및 라틴 아메리카의 120명 이상의 투자자가 참여했습니다. 이 재융자 거래는 GeoPark의 평균 부채 수명을 4.6년으로 연장하며, 2.6년의 연장을 의미합니다. 거래 후 GeoPark의 잔여 노트에는 2027년에 만기도래하는 9,470만 달러와 2030년에 만기도래하는 5억 5천만 달러가 포함되어 있습니다.
GeoPark (NYSE: GPRK) a réussi à finaliser une émission d'obligations seniors de 550 millions de dollars arrivant à échéance en 2030, utilisant une partie des produits pour racheter 405,3 millions de dollars de ses obligations en circulation arrivant à échéance en 2027. Les nouvelles obligations, notées B+ par S&P et Fitch, comportent un coupon de 8,750% avec des paiements d'intérêts semestriels et arriveront à échéance le 31 janvier 2030.
L'offre a été surdemandée d'environ 2 fois, avec la participation de plus de 120 investisseurs des États-Unis, d'Europe, d'Asie et d'Amérique latine. Cette opération de refinancement prolonge la durée moyenne de la dette de GeoPark à 4,6 ans, représentant une extension de 2,6 ans. Après la transaction, les obligations en circulation de GeoPark comprennent 94,7 millions de dollars arrivant à échéance en 2027 et 550 millions de dollars arrivant à échéance en 2030.
GeoPark (NYSE: GPRK) hat erfolgreich ein Senior Notes-Angebot über 550 Millionen US-Dollar mit Fälligkeit im Jahr 2030 abgeschlossen und einen Teil der Erlöse verwendet, um 405,3 Millionen US-Dollar seiner ausstehenden Anleihen mit Fälligkeit im Jahr 2027 zurückzukaufen. Die neuen Anleihen, die von S&P und Fitch mit B+ bewertet sind, haben einen Kupon von 8,750% mit halbjährlichen Zinszahlungen und werden am 31. Januar 2030 fällig.
Das Angebot war etwa 2-fach überzeichnet, wobei mehr als 120 Investoren aus den USA, Europa, Asien und Lateinamerika teilnahmen. Diese Refinanzierungstransaktion verlängert die durchschnittliche Laufzeit der Schulden von GeoPark auf 4,6 Jahre, was eine Verlängerung um 2,6 Jahre darstellt. Nach der Transaktion umfasst das ausstehende Volumen von GeoPark Anleihen in Höhe von 94,7 Millionen US-Dollar mit Fälligkeit 2027 und 550 Millionen US-Dollar mit Fälligkeit 2030.
- Successfully refinanced over 80% of 2027 notes, extending debt maturity profile
- Strong investor demand with 2x oversubscription from diverse global investors
- Improved financial flexibility with 2.6-year extension in average debt life
- Maintained stable credit ratings of B+ from both S&P and Fitch
- Higher interest rate of 8.750% on new notes
- Remaining $94.7 million of 2027 notes still need refinancing
Insights
GeoPark's successful $550 million notes offering marks a strategic financial maneuver that significantly strengthens its balance sheet position. By refinancing $405.3 million of the 2027 notes, the company has effectively addressed 80% of its near-term debt obligations, extending the average debt maturity by 2.6 years to 4.6 years.
The 8.750% coupon rate, while reflecting the current high-interest rate environment, is reasonable considering GeoPark's B+ credit rating and its operational focus in Latin American markets. The 2x oversubscription and diverse investor base spanning four continents demonstrate robust market confidence in GeoPark's business model and growth trajectory.
Several strategic advantages emerge from this refinancing:
- Enhanced financial flexibility through extended maturity profile
- Improved debt structure with bullet payment versus amortizing schedule
- Strengthened liquidity position for potential growth opportunities in key markets like Vaca Muerta
- Reduced refinancing risk during a period of global economic uncertainty
The remaining proceeds allocated to repay the Vaca Muerta assets acquisition-related obligations indicate GeoPark's commitment to maintaining a clean balance sheet while pursuing strategic growth. This disciplined approach to financial management, combined with the company's established operational track record across Latin America, positions GeoPark favorably for sustainable growth in the region's energy sector.
BOGOTÁ,
The following table summarizes key terms of the Notes due 2030:
Term: |
5 Years |
Principal: |
|
Settlement Date: |
January 31, 2025 |
Maturity Date: |
January 31, 2030 |
Issue Price: |
|
Amortization: |
Bullet |
Interest Payments: |
Semi-annual |
Coupon: |
|
Credit Rating: |
B+ (S&P) / B+ (Fitch) |
The order book was oversubscribed by approximately 2 times and included more than 120 investors from
This transaction provides the Company financial flexibility and mitigates the Company’s refinancing risk by extending the average life of GeoPark’s debt to 4.6 years (an extension of approximately 2.6 years).
Breakdown of Notes Outstanding
The following table details the aggregate principal amounts outstanding of GeoPark notes as of September 30, 2024 (last reporting date) and pro-forma upon closing of the notes offering and concurrent tender:
Notes Outstanding |
September 30, 2024 |
Pro-forma |
Notes due 2027 |
|
|
Notes due 2030 |
- |
|
NOTICE
Additional information about GeoPark can be found in the “Invest with Us” section on the website at www.geo-park.com.
Certain amounts included in this press release have been rounded for ease of presentation. Accordingly, certain amounts included in this press release may not sum due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, the company’s intention to repay amounts due under an offtake and prepayment agreement. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.
Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the
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INVESTORS:
Maria Catalina Escobar
Shareholder Value and Capital Markets Director
mescobar@geo-park.com
Miguel Bello
Investor Relations Officer
mbello@geo-park.com
Maria Alejandra Velez
Investor Relations Leader
mvelez@geo-park.com
MEDIA:
Communications Department
communications@geo-park.com
Source: GeoPark Limited
FAQ
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