Pioneer Energy granted interim access to $35 million of DIP financing

By Caroline Salls

Pittsburgh, March 3 – Pioneer Energy Services Corp. obtained court approval to access $35 million of a proposed $75 million in debtor-in-possession financing on an interim basis, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

The final hearing is scheduled for April 7.

PNC Bank, NA will provide the financing, which, along with cash generated from ongoing operations, will be used to support Pioneer’s business during the reorganization process.

The DIP facility will mature on the earliest of five months from the bankruptcy filing date, 45 days after the filing date if final approval has not been obtained, the earlier of the plan effective date and the sale of all or substantially all of the collateral securing the DIP facility and the acceleration of the facility.

The DIP facility will “roll” into an asset-based revolving credit facility upon emergence from the Chapter 11 cases. The new revolver will have a five-year maturity and bear interest at a rate between Libor plus 175 basis points and Libor plus 225 bps, depending on use.

Pioneer Energy is a San Antonio-based drilling services company. The company filed bankruptcy on March 1 under Chapter 11 case number 20-31425.

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