Halcon Resources’ Amended Joint Prepackaged Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on September 8, 2016.
As previously reported, “Convertible Noteholder New Warrants means warrants to purchase New Common Shares representing 1.0% of the total issued and outstanding New Common Shares on the Effective Date (including New Common Shares issuable upon full exercise of the New Warrants but excluding any New Common Shares issued or reserved pursuant to the Management Incentive Plan), subject to dilution by the Management Incentive Plan, exercisable for a four (4) year period commencing on the Effective Date at a per share exercise price of $14.04, which amount is equal to $1,330,000,000 divided by the total number of issued and outstanding New Common Shares on the Effective Date.”
According to documents filed with the SEC, upon consummation of the Plan Halcon Resources entered into a senior secured revolving credit agreement with JPMorgan Chase Bank as administrative agent and certain other financial institutions party as lenders. Pursuant to the exit credit agreement, lenders agreed to provide the Company with a $600 million exit senior secured reserve-based revolving credit facility. The maturity date of the exit facility is the earlier of (i) July 28, 2021 and (ii) the 120th day prior to the February 1, 2020 stated maturity date of the Company’s 2020 second lien notes, if such notes have not been refinanced, redeemed or repaid in full on or prior to such 120th day. Until such maturity date, the loans under the exit credit agreement shall bear interest at a rate per annum equal to (i) the alternative base rate plus an applicable margin of 1.75% to 2.75%, based on the borrowing base utilization percentage under the exit facility or (ii) adjusted LIBOR plus an applicable margin of 2.75% to 3.75%, based on the borrowing base utilization percentage under the exit facility.
This onshore liquids-rich oil and natural gas producer and developer filed for Chapter 11 protection on July 27, 2016, listing $3.5 billion in pre-petition assets. Read more oil & gas bankruptcy news.
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