Extraction Oil & Gas wins final approval of $125 million loan package

By Caroline Salls

Pittsburgh, July 21 – Extraction Oil & Gas, Inc. obtained final court approval to access $125 million in debtor-in-possession financing, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The financing consists of $50 million in new money and a roll up of $75 million of revolving loans under an existing revolving credit agreement.

The DIP facility is underwritten by Wells Fargo Bank, NA, and the $50 million in new money is financed by some lenders under the company’s existing revolver.

Extraction said this DIP financing, combined with cash from operations, is expected to provide sufficient liquidity during the Chapter 11 cases to support its continuing business operations and minimize disruption.

The DIP facility will mature six months from the bankruptcy filing date, with an option for an extension of up to three months.

Interest will accrue at Libor plus 575 basis points.

Extraction Oil & Gas is based in Denver. The company filed bankruptcy on June 14 under Chapter 11 case number 20-11548.

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