Unit grated interim approval to access $18 million of DIP financing

By Caroline Salls

Pittsburgh, May 27 – Unit Corp. obtained court approval to access $18 million of a proposed $36 million of debtor-in-possession financing on an interim basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The final hearing is scheduled for June 19.

The financing, combined with the company’s usual operating cash flow, is expected to provide sufficient liquidity for the company to continue to operate in the ordinary course through the restructuring process.

BOKF, NA, doing business as Bank of Oklahoma, is the DIP financing agent.

The DIP facility will mature four months after the bankruptcy filing date with a two-month extension option.

Interest on new DIP loans and May 2020 pre-petition loans will accrue at Libor plus 650 basis points with a 1% Libor floor.

Unit is a Tulsa, Okla.-based energy company engaged through its subsidiaries in oil and natural gas exploration, production, contract drilling and natural gas gathering and processing. The company filed bankruptcy on May 22 under Chapter 11 case number 20-32740.

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