EdgeMarc Energy gets interim access to $15 million of DIP financing

By Sarah Lizee

Olympia, Wash., May 17 – EdgeMarc Energy Holdings, LLC got interim access to up to $15 million of proposed $108 million in debtor-in-possession financing, according to an interim order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, EdgeMarc received a commitment for $108 million in debtor-in-possession financing from KeyBank, its primary existing lender, which includes $30 million in new-money financing and $78 million of roll-up loans to refinance all outstanding debt owed to KeyBank.

The new financing and cash generated from the company’s ongoing operations will be used to support the business throughout the Chapter 11 proceedings and sale process.

Interest will accrue at the alternative Base rate plus 575 basis points before a specified availability period and at the alternative Base rate plus 525 bps during the availability period.

The facility will mature 180 days after entry of the final order.

A total of $15 million in new-money financing will be available on an interim basis.

EdgeMarc is a Canonsburg, Pa.-based natural gas exploration and production company that filed bankruptcy on May 15. The Chapter 11 case number is 19-11104.

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