Sundance Energy gets court approval of $10 million of DIP financing

By Sarah Lizee

Olympia, Wash., March 11 – Sundance Energy Inc. received interim approval to access $10 million of a proposed $45 million in debtor-in-possession financing from some of its term loan lenders, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Morgan Stanley Capital Administrators, Inc. is the administrative agent for the DIP loan, as previously reported.

At the determination of lenders holding at least 70% of commitments under the DIP facility, the DIP lenders may make up to $5 million available to the company as case extension draws.

The DIP facility is scheduled to mature on the earliest of June 14, the effective date of a plan, and the date all loans become due, whether by acceleration or otherwise.

Interest will be Libor plus 800 basis points, subject to a 1% Libor floor.

The company also received interim approval to use the cash collateral of its pre-petition secured parties and DIP secured parties.

The financing, along with normal operating cash flows and the consensual use of cash collateral, will fund normal-course operations and reorganization expenses.

Denver-based Sundance Energy is an independent energy exploration and production company. The company filed bankruptcy on March 9 under Chapter 11 case number 21-30882.

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