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EV Energy Partners Emerges from Chapter 11; JPMorgan Chase Agents up to $1B Exit Facility

June 05, 2018, 07:09 AM
Filed Under: Energy

EV Energy Partners, L.P. announced that it has successfully completed its financial restructuring and has emerged from Chapter 11 as a new corporation under the name Harvest Oil & Gas Corp. 

Through the restructuring, Harvest has eliminated approximately $355 million of debt and accrued interest from its balance sheet and significantly enhanced its financial flexibility.  At its emergence, the Company entered into an amended and restated credit facility providing for a new reserve-based revolving loan agented by  JPMorgan Chase Bank with a maximum credit amount of $1 billion.
The initial borrowing base under the credit facility is $325 million, with the first scheduled redetermination of the borrowing base in April 2019.  Also, with total debt outstanding of $297 million, and cash on hand of approximately $21 million, total liquidity will be approximately $46 million.
The outstanding borrowings under the RBL bear interest at a rate equal to a customary interbank offered rate plus an applicable margin of 2.5% to 3.5% per annum, based upon utilization. The RBL is not subject to amortization. The RBL matures on February 26, 2021.

Michael E. Mercer, President and Chief Executive Officer, commented that, “Today begins an important new chapter for our Company. With significantly less debt, we have ample liquidity and expect to generate free cash flow in excess of our planned capital requirements.  We are confident that our diverse asset base will serve as a foundation for our future success.”

Kirkland & Ellis LLP served as legal counsel and Perella Weinberg Partners LP served as financial advisor to the Company in connection with its restructuring efforts.

Akin Gump Strauss Hauer & Feld LLP served as legal counsel and Intrepid Partners LLC served as financial advisor to certain noteholders.

Simpson Thacher & Bartlett LLP served as legal counsel and RPA Advisors, LLC served as financial advisor to the administrative agent for the lenders.

Following completion of the restructuring, the Company will have 10 million shares of its common stock outstanding and 0.8 million of warrants with a five-year term to purchase a share of common stock at an exercise price of $37.48.  The Company expects that its shares of common stock will be traded and quoted on the OTC Pink Market under the ticker symbol “HVST”.

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