Finance & Investing | Debt | Bankruptcy / Restructure Update | Capital Markets

Pacific E&P Details Latest Financings Amid Restructuring

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Pacific Exploration & Production Corporation announced the successful closing of a debtor-in-possession financing in the amount of U.S.$500 million, less applicable fees and charges.

In addition, the Company entered into a U.S.$115,532,794 new letter of credit facility with certain lenders under the Company's pre-existing credit facilities.

The closing of the DIP Financing and entering into of the Letter of Credit Facility are in furtherance of the Company's previously announced comprehensive restructuring transaction. The Restructuring Transaction has received support from approximately 79% of the aggregate principal amount of the debt held by the Company's noteholders and lenders under the Company's credit facilities.

Dennis Mills, Chair of the Independent Committee, said: "The closing of the DIP Financing and the entering into of the Letter of Credit Facility are a significant milestone for the Restructuring Transaction. We continue to work constructively with the Supporting Noteholders, Catalyst and other stakeholders to ensure that Pacific emerges from creditor protection as a stronger, more efficient company."

Gabriel de Alba, Managing Director and Partner of Catalyst, said: "The Catalyst Capital Group is excited to be the Creditors and Pacific's partner and provide financing to ensure the long-term viability of the company. Catalyst's philosophy is to invest in businesses we can build. A strong Pacific will play a key role in its countries of operation, to the benefit of all its stakeholders. We believe we can contribute greatly to rebuilding that strength."