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BREAKING: United Site Services Seeks Court Approval for $480M Equity Backstop Agreement with Ad Hoc Lenders

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Relevant Document:
Motion

The United Site Services debtors filed a motion tonight seeking approval of a backstop commitment agreement with an ad hoc lender group that would fully guarantee a $480 million equity rights offering, or ERO, which is an important component of the company’s prepackaged restructuring plan.

The proposed commitment agreement is attached to the motion, with a hearing scheduled for Feb. 10 at 10 a.m. ET.

The debtors provide a chart summarizing the agreement’s key terms, which include the commitment parties’ agreement to purchase 30% of the reorganized company’s new common shares and backstop the remaining 70% offered through the ERO. In exchange, the backstop parties would receive an 8% premium plus expense reimbursement and indemnification protections.

Following mediation, holdout creditor CastleKnight has agreed in principle to join the backstop on identical economic terms as the ad hoc group, according to the filing.

 

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