Seventy Seven secures final court approval of $100 million DIP loan

By Caroline Salls

Pittsburgh, June 28 – Seventy Seven Energy Inc. obtained final court approval to use $100 million of debtor-in-possession financing, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Wells Fargo Bank, NA is the administrative agent, collateral agent and lead arranger and bookrunner.

The DIP facility will mature on the earliest of nine months from the bankruptcy filing date, the occurrence of an exit facility conversion date or the effective date of a plan of reorganization and the acceleration of the loans or termination of the commitments.

Interest will be based on excess monthly availability. For base rate loans, interest will range from the base rate plus 150 basis points to 200 bps. For Libor loans, the rate will range from Libor plus 250 bps to 300 bps.

Based in Oklahoma City, Seventy Seven provides wellsite services and equipment to U.S. land-based exploration and production customers. The company filed bankruptcy on June 7 under Chapter 11 case number 16-11409.

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