Pacific E&P closes $500M DIP financing with Catalyst Capital, noteholders

June 22
13:48 2016

Pacific Exploration & Production Corporation has announced the closing of a debtor-in-possession (DIP) financing in the amount of US$500 million with Canadian private equity firm The Catalyst Capital Group Inc. and certain holders of the company’s unsecured notes.

In addition, Pacific Exploration entered into a US$115.5 million letter of credit facility with supporting bank lenders and creditors.

The closing of the DIP financing and entering into of the letter of credit facility are in furtherance of the company’s previously announced comprehensive restructuring transaction with the supporting creditors and Catalyst that will significantly reduce debt, improve liquidity, and best position the Pacific Exploration to navigate the current oil price environment. The restructuring transaction has received support from approximately 79 per cent of the aggregate principal amount of the debt held by its noteholders and lenders under the company’s credit facilities.

“The Catalyst Capital Group is excited to be the Creditors and Pacific’s partner and provide financing to ensure the long-term viability of the company,” said Gabriel de Alba, Managing Director and Partner of Catalyst. “Catalyst’s philosophy is to invest in businesses we can build. A strong Pacific will play a key role in its countries of operation, to the benefit of all its stakeholders. We believe we can contribute greatly to rebuilding that strength.”

Read the full Press Release

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