Rex Energy seeks court approval for $411.32 million DIP facility

New York, May 21 – Rex Energy Corp. requested approval to enter into a $411.32 million debtor-in-possession financing facility from the U.S. Bankruptcy Court for the Western District of Pennsylvania in a motion filed late on Friday.

The facility will be a senior term loan made up of $100 million of new money and $311.32 million of prepetition first-lien term loans that will be converted into DIP borrowings.

Macquarie Bank Ltd. will be issuing bank, and Angelo, Gordon Energy Servicer, LLC will be DIP agent.

The obligations on the existing first-lien facility include make-whole payments that are due under that agreement, capped at $50 million, meaning that the existing loan to be rolled over is $261.32 million of principal and $50 million of make-whole payments.

The DIP facility will terminate six months after the date of filing for Chapter 11 unless a plan of reorganization becomes effective or the company completes the sale of its assets first.

Interest will be at Libor plus 875 basis points with a 1% Libor floor.

There will be a fee of 3.25% on unused commitments and an upfront fee of 3.75%.

Rex Energy said it was unable to put into effect any of the third-party proposals for DIP financing that it received from a marketing process ahead of the Chapter 11 filing.

Rex Energy is a State College, Pa., oil and gas exploration and production company. It filed for Chapter 11 on May 18 under case number 18-22032.

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