Summary
EXPAND ENERGY Corp. (EXE) has emerged from Chapter 11 bankruptcy following the consummation of its Plan of Reorganization. A significant aspect of this emergence is the establishment of a new $2.5 billion reserve-based Exit Credit Facility, which includes $1.75 billion in revolving Tranche A Loans and $0.22 billion in fully funded Tranche B Loans. This facility is secured by substantially all of the company's assets and includes financial covenants such as a first lien leverage ratio not exceeding 2.75 to 1.00. In conjunction with the bankruptcy exit, EXE also issued $1 billion in senior unsecured notes, comprising $500 million of 5.500% senior notes due 2026 and $500 million of 5.875% senior notes due 2029. The company has also issued various classes of warrants to former holders of its Second Lien and Unsecured Notes as part of the reorganization. All prior equity interests and most existing debt have been cancelled as part of the plan, marking a significant financial restructuring for the company.
Key Highlights
- 1Established a new $2.5 billion reserve-based Exit Credit Facility with MUFG Bank, Ltd. as administrative agent.
- 2Issued $1.75 billion in Tranche A revolving loans and $0.22 billion in Tranche B loans under the new credit facility.
- 3Issued $1 billion in new senior unsecured notes: $500 million due 2026 and $500 million due 2029.
- 4All previous equity interests were cancelled as part of the Chapter 11 Plan of Reorganization.
- 5Various classes of warrants (Class A, B, and C) have been issued to former holders of Second Lien and Unsecured Notes.
- 6The company has adopted a new governance structure with a seven-member Board of Directors and new executive officers.
- 7The company has emerged from Chapter 11 bankruptcy proceedings.