The US Bankruptcy Court gave an order to Legacy Reserves Inc. to obtain DIP financing on a final basis on July 23, 2019 As per the order, the debtor has been authorized to obtain a DIP facility in the amount of $350 million consisting of new money revolving credit facility in the amount of $100 million (inclusive of a sub-facility of up to $1.0 million for the issuance of letters of credit) from existing RBL Lenders and a refinancing term facility in the amount of $100 million with Wells Fargo Bank, National Association acting as the administrative agent. The new money loans would either carry an interest rate of LIBOR plus 5.25% p.a., or an alternate base rate plus 4.25% p.a. along with an additional 2% p.a. interest in the event of default. The Revolving Credit facility would carry an interest rate of alternate base rate plus 3.5% p.a. As per the terms of the DIP agreement, the new money loan carries a commitment fee of 1% p.a. and Up-Front Fee of 1.75%. The DIP facility would mature either on 8 months after the Petition Date i.e. February 18, 2020 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $2.75 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral.