U.S. private equity firm EIG Global Energy Partners said it has submitted a binding proposal to provide US$250 million debtor-in-possession (DIP) financing to Pacific Exploration & Production Corp and sponsor the company’s restructuring.
Compared with the DIP financing proposed by Canadian private equity firm Catalyst Capital Partners last month, EIG’s proposed financing had a lower equity conversion, EIG said on Monday.
Oil and gas producer Pacific Exploration said in April it had reached a deal with debt-holders, including Catalyst, to convert almost all of its debt to equity.
An Ontario court in April approved a US$500 million debtor-in-possession financing facility for the Canadian company and its units.
Catalyst had agreed to provide US$250 million in DIP financing to own a 29.3 percent stake in the restructured company.
EIG said it would also give Pacific Exploration an additional US$75 million to improve the reorganized company’s balance sheet and fund its break-up fee for the deal with Catalyst.
Update: Pacific Exploration, previously known as Pacific Rubiales Energy Corp, is a Toronto-based explorer and producer of natural gas and crude oil in Latin America.
(Reporting by Manish Parashar in Bengaluru; Editing by Shounak Dasgupta)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Pacific Exploration & Production Corp