Seventy Seven Energy Inc. entered into a restructuring support agreement with certain lenders regarding senior notes and a term loan, the company said April 19. The company also said it will file for prepackaged bankruptcy on or before May 26.
There is a tranche A loan in which loan-holders represent 92% of the loan’s outstanding principal amount; also, certain noteholders collectively own or control more than 57.7% of the outstanding principal amount of 6.625% senior notes due 2019.
Under the agreement, the balance sheet will be deleveraged by converting about $1.1 billion of bond debt into new common equity without interrupting the company’s daily operations.
Baker Botts LLP is Seventy Seven’s legal counsel and Lazard Freres & Co. LLC is its financial adviser. Alvarez & Marsal is Seventy Seven’s restructuring adviser.
Seventy Seven Energy Inc. is based in Oklahoma City.
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