August 24, 2018 – Pacific Drilling requested authority to enter into a second lien commitment agreement [Docket No. 520]. The motion notes, “Specifically, the Debtors seek: (a) authority to (i) pay to the Commitment Parties contemporaneously with the Effective Date of the Plan a commitment premium equal to 8.0% of the initial aggregate principal amount of New Second Lien PIK Toggle Notes of $300 million, which shall be paid in full in New Second Lien PIK Toggle Notes or, in the event that the Second Lien Commitment Agreement is terminated for any reason other than by the Debtors due to the breach by any Commitment Party of its representations, covenants, or obligations to purchase the New Second Lien PIK Toggle Notes under the Second Lien Commitment Agreement or the New Second Lien PIK Toggle Notes are not issued by the Outside Date, $24 million in cash (the ‘Commitment Premium’)….On the Effective Date, the Debtors intend to use the proceeds of the Exit Financing Transactions to (a) repay approximately $475.0 million (plus accrued and unpaid fees and interest) under their prepetition Revolving Credit Facility; (b) repay approximately $661.5 million (plus accrued and unpaid fees and expenses) under their Senior Secured Credit Facility; (c) repay certain other creditors holding Allowed Claims under the Plan; (d) pay certain fees and expenses related to the chapter 11 cases; and (e) emerge with over $400 million of necessary working capital for the reorganized Company….Pursuant to the Second Lien Commitment Agreement, certain members of the Ad Hoc Group (the ‘Commitment Parties’) have committed to purchase any New Second Lien PIK Toggle Notes that CS Securities is unable to sell, thereby ensuring that the Debtors will have access to $300 million in necessary junior debt capital at the time of their emergence from chapter 11.” The Court scheduled an August 30, 2018 hearing to consider the amendment with objections due by August 29, 2018.
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