Nine Point Energy extends maturity date under DIP facility again

By Sarah Lizee

Olympia, Wash., July 15 – Nine Point Energy Holdings, Inc. amended its debtor-in-possession facility again to extend the maturity date and some case milestones, according to a notice filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the maturity date was extended to 137 calendar days after the petition date, from 122 calendar days previously.

The company must also close the sale of its assets within 137 calendar days after the petition date.

As previously reported, the total amount of new money under the facility is $20 million, with the $13 million of interim financing having been funded following the interim order, another $5 million funded following the final order, and a further $2 million bridge commitment available 60 days after the petition date. The bridge commitment would only be funded if the company’s approved budget reflected an average weekly ending cash balance of $7.5 million or less over the period starting on the week in which the funding would occur and the week ending July 9.

The pre-petition roll-up amount is $60 million.

Interest is one-month Libor plus 750 basis points. The facility is subject to a 1% Libor floor and a 2% commitment fee. The default rate would be 200 bps above the non-default rate.

Pre-petition agent AB Private Credit Investors LLC is the DIP agent.

Proceeds will be used for working capital and general corporate purposes, and for bankruptcy-related costs and expenses.

The Denver-based exploration and production company filed bankruptcy on March 15 under Chapter 11 case number 21-10570.

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