Rex Energy filed with the U.S. Bankruptcy Court a motion for entry of interim and final orders (i) authorizing the Debtors to obtain superpriority D.I.P. financing, pursuant to the terms set forth in the D.I.P. credit agreement; (ii) authorizing the Debtors to use cash collateral; (iii) granting priming liens and superpriority administrative claims; (iv) approving the form of adequate protection to be provided by the Debtors; (v) modifying the automatic stay to the extent necessary to effectuate the terms of the DIP Orders; and (vi) scheduling a final hearing to consider entry of the final order.
The motion explains, “The proposed DIP Facility consists of a senior term loan credit facility in the aggregate principal amount of $411,315,322 among: (a) Rex Energy Corporation (‘Rex Energy’ or the ‘DIP Borrower’), as borrower; (b) the DIP Lenders; (c) Macquarie Bank Limited, as Issuing Bank; and (d) Angelo, Gordon Energy Servicer, LLC (‘Angelo, Gordon’), as DIP Agent. In accordance with the RSA, the DIP Facility will consist of $100,000,000 of new money and $311,315,322 that will be used to convert the existing obligations under the Prepetition First Lien Credit Agreement into loans under the DIP Facility. The obligations existing under the Prepetition First Lien Credit Agreement that will be converted into the DIP Facility include certain make-whole payments that are due and owing under the Prepetition First Lien Credit Agreement. As part of the settlement embodied in the RSA, those make-whole obligations will be limited to $50 million, subject to certain upward and downward adjustments…of the Interim Order and the RSA.”
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