Transactions & Cases Detail



Transaction/Case Details

Lone Pine Resources completes C$400M recapitalization and restructuring transaction

DATE CLOSED

January 31, 2014

BUSINESS SECTOR

Oil & Gas

LEAD OFFICE

Calgary

VALUE

400 Million CAD


OVERVIEW

On January 31, 2014, Lone Pine Resources Canada and Lone Pine Resources completed a C$400 million cross-border recapitalization and restructuring transaction pursuant to a plan of compromise and arrangement under the Companies' Creditors Arrangement Act (Canada) (CCAA) and ancillary proceedings under Chapter 15 of the United States Bankruptcy Code.

The transaction involved the exchange of approximately C$220 million of unsecured notes and other unsecured claims for 100% of the post-restructuring common equity of Lone Pine, the issue of US$100 million in new preferred equity to eligible unsecured creditors, the arrangement of C$130 million in new secured credit facilities, and the repayment of approximately C$192 million of secured debt with proceeds from the preferred equity offering and drawings under the new credit facilities. The recapitalization reduced Lone Pine's debt by over C$300 million.

The CCAA and Chapter 15 proceedings were initiated on September 25, 2013 in accordance with support agreements entered into between Lone Pine and the holders of approximately 75% of Lone Pine's then outstanding unsecured 10.375% senior notes due 2017. Certain of such initial consenting noteholders also provided a backstop commitment to subscribe for any portion of the preferred equity offering that was not taken up by other eligible creditors.

The plan of compromise and arrangement was approved by affected unsecured creditors of Lone Pine at meetings held on January 6, 2014, and by the Court of Queen's Bench of Alberta pursuant to a sanction order granted on January 9, 2014. The CCAA sanction order was recognized and given full effect in the United States pursuant to an order of the United States Bankruptcy Court for the District of Delaware under Chapter 15 of the United States Bankruptcy Code granted on January 10, 2014.

Lone Pine Resources, headquartered in Calgary, Alberta, is an explorer and developer of natural gas and light oil.

McCarthy Tétrault LLP represented PricewaterhouseCoopers in Canada as court-appointed monitor of Lone Pine in the CCAA proceedings McCarthy Tétrault’s team was led by Sean Collins and included Walker MacLeod, Pantelis Kyriakakis, Kelly Peters, John Boscariol, Robert Glasgow, Robert Nearing and Wilson Acton.

 

Contact


 
For general information on McCarthy Tétrault Transactions & Cases, please contact [email protected].

Related Area of Expertise


Bankruptcy & Restructuring
read /

Competition/Antitrust
read /

Securities Regulation & Investment Products
read /

Tax
read /