Cox Oil gets access to $50 million of new money under DIP facility

By Sarah Lizee

Olympia, Wash., May 24 – Cox Oil Offshore, LLC received interim approval of a $345.19 million debtor-in-possession financing package with Amarillo National Bank as agent and lender and BP Energy Co. as lender, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The facility consists of a $75 million new-money term loan facility, a $220.19 million rollup of a prepetition first-lien first-out facility and a $50 million rollup of a first-lien second-out facility.

Following the interim order, the company has access to $50 million of the new money term loan.

The new money bears interest at the Wall Street Journal prime rate plus 1,000 basis points per annum, payable in kind.

The rollup bears interest at the WSJ prime rate plus 275 bps per annum, which was the default rate under the prepetition loan agreement.

The facility is set to mature in six months, subject to earlier termination when certain events occur.

A final hearing is scheduled for June 7.

The Dallas-based drilling company filed bankruptcy on May 14 under Chapter 11 case number 23-90328. Four creditors filed an involuntary Chapter 7 petition against the company in the U.S. Bankruptcy Court for the Eastern District of Louisiana on May 12 under case number 23-10734.

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