Dentons Cárdenas & Cárdenas advises The Bank of Nova Scotia and a syndicate of banks on a US$750 million financing to Parex Resources Inc. for the acquisition of Frontera’s[...]

Dentons Cárdenas & Cárdenas advised The Bank of Nova Scotia (Scotiabank) on all Colombian law aspects related to the financing to Parex Resources Inc. for the acquisition of Colombian exploration and production (E&P) assets from Frontera Energy Corp., in a transaction valued at approximately US$750 million.

The financing was structured through a US$500 million private offering of senior notes due 2031, in which Scotiabank acted as global coordinator and joint bookrunner, together with a complementary corporate financing component associated with the transaction.

Dentons provided comprehensive advice on all Colombian law aspects of the financing structure, including legal and regulatory review of the underlying assets, local due diligence focused on risks related to E&P blocks, hydrocarbons contracts and environmental matters, as well as the analysis of the transaction structure and the design and implementation of the security package under Colombian law.

The transaction enables Parex to consolidate its position as the largest independent oil and gas producer focused on Colombia, through the acquisition of a portfolio of over 17 E&P assets, including flagship fields such as Quifa and Cubiro, which contribute around 39,000 barrels of oil equivalent per day. As a result, Parex's combined production is expected to exceed 80,000 barrels of oil equivalent per day.

Dentons Cárdenas & Cárdenas played a key role in coordinating the Colombian law aspects of a complex cross-border transaction combining capital markets and bank financing elements, including the alignment of the international debt issuance with the associated corporate financing structure, as well as the implementation of local security and regulatory compliance.

The Dentons Cárdenas & Cárdenas team was comprised of: (i) Santiago González, Partner; (ii) Daniel García, Associate; (iii) Juan Bernardo Caicedo, Associate; (iv) Valery Jurado, Associate; and (v) Gregorio Rendón, Law Clerk.

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