California Resources Corp. Completes Series of Liability Management Transactions

November 17, 2017

California Resources Corp. (CRC) completed a series of liability management transactions designed to extend debt maturities, provide additional liquidity and obtain financial covenant relief. The transactions included the incurrence of a new $1.3 billion first lien term loan and the amendment of CRC’s existing first lien credit facility to permit the new money transaction and extend the maturity of the existing facility to the end of 2022, as well as provide financial covenant relief. The proceeds of the new term loan were used to pay down in full the remainder of a term loan and a portion of outstanding revolver borrowings under CRC’s existing first lien credit agreement.
 
The S&C team advising CRC was led by Alison Ressler and John Estes, along with Daniel Biller, Moritz Raepple and John Grein. David Spitzer, Saul Brander and Jonathan Rhein advised on tax matters.