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EP Energy strikes support agreement for Chapter 11 restructuring plan


According to Market Intelligence, December 2022


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EP Energy strikes support agreement for Chapter 11 restructuring plan

EP Energy Corp. entered into an agreement with holders of its senior secured notes to support its Chapter 11 restructuring plan.

EP Energy struck the plan support agreement with holders of approximately 52.0% of its 8.000% senior secured notes due 2024, and 79.3% of its 9.375% senior secured notes due 2024 and 8.000% senior secured notes due 2025, according to an Oct. 21 SEC filing.

EP Energy's Chapter 11 reorganization plan will be implemented according to the plan term sheet annexed to the plan support agreement, which is premised on an equity rights offering of up to $475 million, $463 million of which is backstopped by supporting noteholders; and an approximately $629 million exit facility, for which, as of Oct. 18, over 90% of the lenders under EP Energy's pre-petition reserve-based lending facility have committed to provide support, according to the filing.

In line with its restructuring, the company may also execute a private placement of new common shares for a purchase price of up to $75 million.

EP Energy in October said it voluntarily filed for Chapter 11 reorganization to lower its debt and strengthen its balance sheet. The company acquires and develops unconventional onshore oil and natural gas properties in the U.S.