Latham advises on $500M Parex-Frontera financing
Latham & Watkins has counseled the financing sources in a US$500 million private placement of 8.50% five-year senior notes by Calgary-based Parex Resources (TSX: PXT), with the proceeds to be used to acquire all of Frontera Energy Corporation’s (TSX: FEC) exploration and production assets in Colombia.
The transaction is a multi-jurisdictional acquisition financing involving two Toronto Stock Exchange-listed companies. Parex is one of the largest independent oil and gas companies in Colombia, focused on conventional production. At the same time, Frontera Energy is a Canadian public company engaged in the exploration, development, production, transportation, storage, and sale of oil and natural gas across South America.
The acquired operations encompass Frontera’s entire Colombian upstream business, including its oil and gas exploration and production assets, a reverse osmosis water treatment facility, and a palm oil plantation.
Latham & Watkins’ Austin-based team represented both the initial purchasers on the senior notes offering and the financing parties in the initial commitments supporting the Frontera acquisition. The corporate deal team was led by partners David Miller (pictured left), Roderick Branch (pictured center), and Sam Rettew (pictured right), alongside counsel Manasi Bhattacharyya, special legal consultant Concepcion Olivera, and associates Chelsea Carlson, Alejandra Castillo, and Alec Born.
Tax matters were handled by partner Bryant Lee with associate Lucas Migliano, while environmental matters were covered by partner Joshua Marnitz with associate Nolan Fargo.
