Hi-Crush receives interim court approval to access financing package

By Caroline Salls

Pittsburgh, July 15 – Hi-Crush Inc. obtained court approval to access a portion of a proposed $65 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.

As previously reported, the company said the DIP and exit financing will be used to meet working capital needs during the pendency of its Chapter 11 case and long-term capital needs after emergence.

The DIP/exit facilities consist of a $25 million senior secured asset-based facility from its pre-bankruptcy secured lenders that will convert to an exit facility upon emergence from the Chapter 11 cases, and a $40 million DIP loan from the participating noteholders, which is scheduled to be refinanced to $40 million of new senior secured convertible notes.

A total of $23.56 million in ABL financing and $20 million in term financing is available on an interim basis.

JPMorgan Chase Bank, NA is the administrative agent for the DIP ABL facility, and Cantor Fitzgerald Securities for the DIP term loan facility.

Both facilities are scheduled to mature on Jan. 21, 2021.

Interest on the ABL facility will accrue at the Base rate plus 250 basis points or Eurodollar plus 350 bps, and interest on the term facility will be at the Base rate plus 1,000 bps or Eurodollar plus 1,100 bps.

Hi-Crush is a Houston-based provider of proppant and logistics solutions to the oil and gas industry. The company filed bankruptcy on July 12 under Chapter 11 case number 20-33495.

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