Clifford Chance, a preeminent global law firm, has played a pivotal role in advising Frontera Energy on a major financial maneuver, orchestrating a cash tender offer to repurchase $80 million of its 7.875% senior notes due 2028. This strategic move is part of Frontera’s broader initiative to modernize its capital structure and enhance financial flexibility.

The transaction also entailed a consent solicitation, a critical step that allowed Frontera to secure essential amendments to the bond’s covenant terms. This adjustment is a cornerstone in Frontera's strategy to refine its debt obligations and operational capabilities.

Frontera Energy, a leading Canadian energy company with significant operations across South America, witnessed robust investor participation in this offer. The company successfully reached its tender cap and obtained the necessary consents to implement the proposed changes to the indenture, thereby reducing its outstanding notes by more than 20% and diminishing its debt burden three years ahead of schedule.

Orlando Cabrales, CEO of Frontera, expressed his satisfaction with the transaction, highlighting its significance in aligning the company's debt structure with current market conditions and reaffirming its commitment to bondholders. "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," Cabrales stated. He also noted that this marks a key milestone in Frontera's continued efforts to prioritize and enhance investor value, with plans to explore similar initiatives in the future.

The tender offer and consent solicitation were initially rolled out in early May through an Offer to Purchase and Consent Solicitation Statement, with details and conditions clearly outlined in the document, which was updated throughout the transaction process.

On the legal front, Clifford Chance’s advisory team was led by partner Hugo Triaca, with associates Joyce Moore and David Rondon contributing significantly. Tax-related guidance was provided by partner Avrohom Gelber and associate Gil Shauly, ensuring compliance and strategic financial management throughout the transaction.

Clifford Chance, known for its vast international presence and deep legal expertise, continues to support major corporate clients like Frontera in navigating complex financial transactions and restructuring efforts, reinforcing its reputation as a leader in corporate law and finance.

This strategic financial restructuring not only bolsters Frontera’s position in the competitive energy market of Latin America but also underscores the effectiveness of proactive debt management and investor relations in today's dynamic economic landscape.