SANCHEZ ENERGY CORPORATION (OTCMKTS:SNZYP) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
Debtor-in-Possession Credit Agreement
As previously disclosed, on August 11, 2019, Sanchez Energy Corporation (the “Company”) and certain of its subsidiaries filed voluntary petitions for reorganization under chapter 11 of the United States Bankruptcy Code (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of Texas (the “Court”).
Effective as of August 16, 2019 the Company, as borrower, the financial institutions or entities from time to time parties thereto, as lenders, and Wilmington Saving Fund Society, FSB, as administrative agent and collateral agent, entered into a Senior Secured Debtor-in-Possession Term Loan Credit Agreement (the “DIP Facility”). Certain matters related to the DIP Facility, including certain of the terms and conditions of the DIP Facility, are disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, filed on August 14, 2019. On August 19, 2019, the Company borrowed an initial $50 million under the DIP Facility. The Company’s ability to access the remaining $125 million in principal amount of new term loans under the DIP Facility is subject to the final approval of the Court.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The information included, or incorporated by reference, in Item 1.01 of this Form 8-K regarding the DIP Facility is incorporated in this Item 2.03 by reference.
Item 7.01 Regulation FD Disclosure
Press Release
On August 19, 2019, the Company issued a press release announcing the Court’s approval of the Debtors’ “first day” motions in the Chapter 11 Cases. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information included in this Form 8-K under Item 7.01 and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that Section, unless the registrant specifically states that the information is to be considered “filed” under the Exchange Act or incorporates it by reference into a filing under the Exchange Act or the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits
(d) Exhibit
