Weatherford gets final approval to access $1.75 billion in financing

By Caroline Salls

Pittsburgh, Aug. 1 – Weatherford International plc obtained final court approval to access a $1.75 billion debtor-in-possession financing package, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

Citibank, NA is the administrative agent, collateral agent and issuing bank.

The financing is comprised of a $750 million revolving DIP facility and a $1 billion DIP term loan facility.

The DIP credit agreement carries a 12-month term.

Interest will occur at the alternate Base rate plus 200 basis points or Libor plus 300 bps with a 0% Libor floor.

Proceeds of the DIP loans will be used to repay some pre-bankruptcy debt, cash collateralize letter-of-credit obligations and finance the working capital needs and general corporate purposes of the company and some of its subsidiaries.

Weatherford is an oilfield services company based in Baar, Switzerland. The company filed bankruptcy on July 1 under Chapter 11 case number 19-33694.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.