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BRIEF-Pacific announces comprehensive restructuring agreement with Catalyst Capital

Published 2016-04-19, 02:37 a/m
© Reuters.  BRIEF-Pacific announces comprehensive restructuring agreement with Catalyst Capital
FEC
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April 19 (Reuters) - Pacific Exploration And Production
Corporation PRE.TO
* Pacific announces comprehensive restructuring agreement
with Catalyst Capital with support of certain of its noteholders
and lenders to strengthen its financial position
* Says operations of company's subsidiaries will continue as
normal and without disruption
* Restructuring transaction will result in a net reduction
of indebtedness by about $5 billion
* Debtor-In-Possession financing of $500 million less
original issue discount of 4% to be provided jointly by certain
co's noteholders
* Break fee equal to 5% of principal amount of dip financing
shall be payable by co to Catalyst,funding creditors
* Has agreed to a "no shop" provision with catalyst for a
period of up to twelve weeks
* Providers of DIP financing to receive warrants to buy
their pro rata share of 25% of fully diluted common shares of
reorganized co
* Catalyst has agreed to backstop creditor dip financing
* Says funding creditors to provide U.S. $250 million of DIP
financing
* Creditor DIP financing to not be repaid at exit of
restructuring deal and to convert into 5-year secured notes on
customary terms
* Says catalyst has committed to providing u.s. $250 million
of dip financing
* Claims by co's creditors,other unsecured creditors(not of
co's units), to be fully extinguished,exchanged for 58.2% of
shares of reorganized co

Source text for Eikon: ID:nPnbV6ZXYa
Further company coverage: PRE.TO

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