UPDATE 2-Pacific Exploration in restructuring deal with Catalyst Capital

Tue Apr 19, 2016 10:15am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* About $5.3 bln debt to be exchanged for 58.2 pct of equity

* Catalyst to provide $250 mln in debtor-in-possession financing

* Catalyst to own 29.3 pct stake in restructured company

* TSX suspends shares effective immediately (Adds details about TSX suspending trading of shares, background)

April 19 (Reuters) - Pacific Exploration and Production Corp said it reached a deal with debtholders, including Catalyst Capital Group Inc, to convert almost all of its debt to equity as it looks to fight a prolonged slump in oil prices.

The deal comes after Pacific Exploration said last week that its board had agreed to negotiate a financial restructuring, involving the private equity fund, after the oil and gas company missed an interest payment.

About $5.3 billion of the company's debt will be exchanged for 58.2 percent of its common shares under the restructuring deal, Pacific Exploration said.

Catalyst has agreed to provide half of the $500 million in debtor-in-possession financing and will own a 29.3 percent stake in the restructured company, Pacific Exploration said.

The company, previously known as Pacific Rubiales Energy Corp, said its operations, along with those of its subsidiaries, would not be affected by the restructuring.   Continued...