BRIEF-Pacific announces comprehensive restructuring agreement with Catalyst Capital

Tue Apr 19, 2016 2:37am EDT
 
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April 19 (Reuters) - Pacific Exploration And Production Corporation

* Pacific announces comprehensive restructuring agreement with Catalyst Capital with support of certain of its noteholders and lenders to strengthen its financial position

* Says operations of company's subsidiaries will continue as normal and without disruption

* Restructuring transaction will result in a net reduction of indebtedness by about $5 billion

* Debtor-In-Possession financing of $500 million less original issue discount of 4% to be provided jointly by certain co's noteholders

* Break fee equal to 5% of principal amount of dip financing shall be payable by co to Catalyst,funding creditors

* Has agreed to a "no shop" provision with catalyst for a period of up to twelve weeks

* Providers of DIP financing to receive warrants to buy their pro rata share of 25% of fully diluted common shares of reorganized co

* Catalyst has agreed to backstop creditor dip financing   Continued...