Nuverra Environmental Solutions filed with the U.S. Bankruptcy Court a motion for interim and final orders authorizing the Debtors to obtain financing and utilize the cash collateral of pre-petition secured parties, modifying the automatic stay and scheduling a final hearing.
The motion explains, “In an effort to continue operations and preserve estate value, the Debtors secured two complimentary credit facilities: the $31.5 million DIP Revolving Facility from the lenders under the Existing Revolving Credit Facility (the ‘Existing Revolving Credit Facility Lenders’) and the $12.5 million DIP Term Facility from their Existing Term Loan Lenders. Nuverra is the borrower under each of the DIP Facilities, and each of the other Debtors (collectively, the ‘Guarantors’) guarantees the DIP Facilities. The Debtors expect that, together, the DIP Facilities will provide them with the liquidity they need to operate in chapter 11 and fund the expenses of administering their cases.”
In addition, “The DIP Term Facility is a senior secured new money multiple-draw term loan facility that makes available additional funding to the Debtors to fund operations in accordance with a budget approved by the DIP Lenders (the ‘Budget’). The Debtors may borrow up to $7.5 million under the DIP Term Facility prior to entry of a Final Order. Upon the effective date of the Debtors’ proposed prepackaged plan of reorganization…” Wells Fargo Bank will serve as the revolver agent and Wilmington Savings Fund Society is the term loan agent, and the facilities bear respective interest rates of base plus 450 basis points and Libor +1200Bps, subject to 1% floor.
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