California Resources interim financing approved; final hearing Aug. 14

By Caroline Salls

Pittsburgh, July 24 – California Resources Corp. obtained court approval to access debtor-in-possession financing on an interim basis, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

The final hearing is scheduled for Aug. 14.

As previously reported, the company received a commitment for more than $1 billion in DIP financing from some of its creditors to support its operations through the Chapter 11 process. The DIP financing will also be used to fully refinance California Resources’ 2014 revolving credit facility.

The DIP financing motion said the commitment amount would not exceed $1,133,010,656, consisting of an up to $483.01 million senior DIP facility, and a $650 million junior DIP facility.

The interim order allows the company to access $349.01 million of the senior DIP facility and $650 million under the junior DIP facility.

JPMorgan Chase Bank, NA is the senior DIP agent, and Alter Domain Products Corp. is the junior DIP agent.

The facilities will mature six months from the bankruptcy filing date.

Interest on the senior facility will accrue at the adjusted Base rate plus 350 basis points or Libor plus 450 bps, and interest on the junior facility will accrue at the adjusted Base rate plus 800 bps or Libor plus 900 bps.

California Resources is a Los Angeles-based oil and natural gas exploration and production company. The company filed bankruptcy on July 15 under Chapter 11 case number 20-33568.

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