Brazos Electric seeks approval of $350 million revolving DIP facility

By Sarah Lizee

Olympia, Wash., May 12 – Brazos Electric Power Cooperative, Inc. is seeking approval to enter into a $350 million new money revolving debtor-in-possession facility, according to an emergency motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

JPMorgan Chase Bank, NA is the administrative agent and collateral agent.

Interest will be Libor plus 250 basis points. The default rate will be an additional 200 bps over the interest rate.

The facility will mature on the earliest of one year, subject to an option to extend the maturity by another 180 days; June 17, if a final order has not been entered into by then; the day a sale of substantially all of the debtors’ assets has closed; the effective date of a Chapter 11 plan; and the date any loans are accelerated as a result of an event of default.

The proposed financing will be available in two tranches, with the first $150 million available following an interim order and the remaining $200 million available following a final order.

The company said the facility will provide it with critical working capital and ensure the continuity of electricity service to the debtor’s member cooperatives and the customers they serve during the peak season of summer.

A hearing is scheduled for May 18.

Brazos Electric is a 3,994-megawatt generation and transmission cooperative based in Waco, Tex. The company filed bankruptcy on March 1 under Chapter 11 case number 21-30725.

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