Memorial Production Partners extended its forbearance agreements with senior note holders for the second time, with the agreements now due to expire Jan. 13, 2017.
Under the agreements, the note holders will refrain from using remedies they are entitled to when Memorial Production Partners chose not to make an interest payment of about $24.6 million on its 2021 notes. The agreements are with note holders of 51.7% of the partnership's 7.625% senior notes due 2021 and of 69% of its 6.875% senior notes due 2022.
Memorial Production Partners also struck an agreement with its revolving credit facility to extend a waiver through Jan. 13, 2017, also related to the skipped payment, according to a Dec. 19 news release.
The agreements were made so the partnership can continue talks with its lenders and a steering committee of its note holders exploring strategic alternatives to improve its balance sheet. Memorial Production Partners is conducting business operations as usual.
Perella Weinberg Partners LP is serving as financial adviser, and Weil Gotshal & Manges LLP is serving as legal counsel.