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Halcon wins interim OK to use $500 million of loan; plan hearing set
By Caroline Salls
Pittsburgh, July 29 – Halcon Resources Corp. received court approval to use $500 million of a proposed $600 million debtor-in-possession facility on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.
The final hearing is scheduled for Aug. 23.
The financing will be provided by some lenders in the company’s existing reserve-based credit facility, led by JPMorgan Chase Bank, NA and Wells Fargo.
The facility includes a rollup of pre-bankruptcy revolving credit facility obligations.
Interest will be based on commitment utilization percentage and will range from Base rate plus 175 basis points to Base rate plus 275 bps for Base rate loans and Libor plus 275 bps to Libor plus 375 bps for Eurodollar loans.
The facility will mature on the earlier of three months from the bankruptcy filing date, subject to extensions in three-month increments to no later than 12 months from the filing date, and the effective date of the company’s Chapter 11 plan.
Halcon said it plans to use the DIP loan to repay outstanding amounts due on its existing revolver.
The DIP facility will convert into a reserve-based revolving credit facility with availability of $600 million upon emergence from bankruptcy.
In addition, the court scheduled the combined hearing on confirmation of Halcon’s Chapter 11 plan and approval of the related disclosure statement for Sept. 8.
Based in Houston, Halcon is an independent energy company focused on onshore oil and natural gas exploration. The company filed bankruptcy on July 27 under Chapter 11 case number 16-11724.
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