Milagro Oil granted final approval to use $15 million of DIP loan

By Mark Reccek

Bethlehem, Pa., Aug. 19 – Milagro Oil & Gas, Inc. received final approval to use up to $15 million of a new money loan, according to an order issued Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The use of cash collateral was also authorized.

TPG Specialty Lending, Inc. is the DIP agent.

The company's DIP financing also includes a term loan equal to the dollar-for-dollar conversion of the company’s outstanding pre-bankruptcy first-lien obligations.

The facility will mature on the earliest of Nov. 15, the date of payment in full in cash and termination of the DIP loan commitments, the effective date of Milagro’s Chapter 11 plan, the closing date of a sale of all or substantially all of the company’s assets, conversion or dismissal of the Chapter 11 cases and the date of acceleration of the loans.

Interest will accrue at Libor plus 950 basis points with a 1% Libor floor for Libor loans and the alternate Base rate plus 850 bps, with a 3.5% floor.

The financing will allow the company to maintain operations, as well as pursue its Chapter 11 plan.

Milagro is a Houston-based oil and gas company primarily engaged in the acquisition, exploitation, development and production of oil and natural gas reserves. The Chapter 11 case number is 15-11520.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.