Frontera Pipeline Investment ( FPI ), a wholly-owned subsidiary of Calgary-based Frontera Energy Corporation, has entered into an amended credit agreement with a syndicate of lenders led by Macquarie Group.

The lenders agreed to increase the amount available in the original credit agreement to US$220 million, guaranteed by FPI’s parent company Frontera ODL Holding. Clifford Chance advised Macquarie Bank as sole lead arranger and bookrunner in connection with the credit facility.

The recapitalization facility is supported exclusively by the cash flows from the company's interest in Oleoducto de los Llanos Orientales  ( ODL ) and is non-recourse to Frontera.

ODL is a strategic midstream asset in Colombia, with a 260-kilometre onshore pipeline co-owned by FPI ( 35% ) and Cenit Transporte y Logistica de Hidrocarburos SAS ( 65% ). It connects the Llanos region, the largest oil-producing basin in the country, which holds approximately 70% of Colombia's proved oil reserves, to both domestic and export markets via its connection to the Ocensa pipeline. Key customers include Ecopetrol, Frontera, GeoPark, Parex, and Hocol.

In 2024, ODL transported 242,000 barrels of oil per day, or approximately 30% of Colombia's total daily oil production. ODL is also working on key growth initiatives, including its recently completed connection to Ecopetrol's Caño Sur field.

The closing of the recapitalization facility provides the company with US$115 million in net proceeds, while preserving future upside on ODL. The financing excludes Puerto Bahía from the security package, providing Puerto Bahía greater flexibility to secure independent financing for new strategic growth projects.

The company expects to use a portion of the net proceeds of the recapitalization facility to make an offer to all shareholders to repurchase common shares pursuant to a substantial issuer bid.

Citigroup Global Markets and Itau BBA USA Securities are acting as dealer managers for the offer and solicitation agents for the solicitation.