Gastar wins final court approval to access $100 million of financing

By Caroline Salls

Pittsburgh, Nov. 29 – Gastar Exploration Inc. obtained final court approval to access $100 million of new-money debtor-in-possession financing, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company’s DIP financing is comprised of $383.9 million in term loans, consisting of $100 million of new-money loans and $283.9 million of refinanced term loan obligations.

Wilmington Trust, NA is the DIP loan agent.

The facility will mature on the earliest of the effective date of a Chapter 11 plan, Feb. 15 and the date all of the loans become due and payable.

Upon maturity of the DIP obligations, the company said some of those obligations will be rolled over into an exit facility.

The DIP loans will bear interest at a rate of Libor plus 750 basis points, subject to a 2% floor. The interest rate will increase to Libor plus 1,000 bps for loans outstanding for more than 90 days.

Gastar Exploration is Houston-based oil and natural gas company. The company filed for bankruptcy on Oct. 31 under Chapter 11 case number 18-36057.

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