HOUSTON, TEXAS (Ian Silverman, Energy Analytics Institute, 21.May.2025, Words: 391) — Frontera Energy Corporation‘s board of directors approved the commencement of a substantial issuer bid pursuant to which the company will offer to purchase from holders of common shares of the company up to 7,583,333 shares for cancellation at a purchase price of CAD$12.00 per share, for an aggregate purchase price not exceeding CAD$91mn (equivalent to $65mn).
The offer is expected to commence on 29 May 2025 and remain open for acceptance until 5pm (Eastern time) on 4 Jul. 2025, unless extended, varied or withdrawn by the company. Pursuant to the offer, tendering shareholders may elect to tender a specified number of shares, Frontera announced on 21 May 2025 in an official statement.
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The company plans to fund the share repurchases with cash on hand and the funds available to the company through the recently closed $220mn non-recourse secured credit facility among the company’s indirect wholly-owned subsidiary, Frontera Pipeline Investment AG, as borrower, FEC ODL Holding Corp., as guarantor, and a syndicate of lenders led by Macquarie Bank Limited.
“With the successful ODL pipeline recapitalization now complete, Frontera is following through on its commitment to return significant value to its stakeholders by distributing CAD$91mn via this share buyback and up to an additional $65mn via the recently announced tender offer and consent solicitation in respect of the company’s 7.875% senior secured notes due 2028.
Orlando Cabrales, Chief Executive Officer (CEO), Frontera, commented:
These efforts are consistent with the Company’s strategy of unlocking value and returning capital to its stakeholders. Our proposed C$12.00 per share offer is in-line with the fundamental value the Board and management see in the company and with the value of previous share repurchases. Furthermore, Frontera believes the C$12.00 per share offer through the substantial issuer bid format represents a fair and equitable value available to all of its shareholders.
Upon successful completion of the offer, Frontera will have returned approximately $144mn of capital to its Shareholders over the last twelve months via substantial issuer bids, declared dividends and share repurchases through the company’s normal course issuer bid program.
Frontera will continue to consider similar investor-focused initiatives throughout 2025 and beyond.”
The offer is denominated in Canadian dollars, and shareholders may elect to receive payment in either Canadian or US dollars.
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By Ian Silverman reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
