Whiting Petroleum has completed a financial restructuring and emerged from Chapter 11 bankruptcy, satisfying all conditions under its plan of reorganization. The company's new capital structure includes a $750 million reserve-based lending (RBL) facility, maturing April 2024. Whiting's unsecured claims received a proportionate distribution of 97% of newly issued common stock. $425 million has been drawn from the RBL which is LIBOR +275-375 bps rate with a 100 bps floor.
Whiting has 38.1 million common shares outstanding with 500 million shares authorized at emergence. Current shareholders will receive a single share for every 75 shares owned, and 3.1 million incremental shares are reserved for potential future distribution to certain unsecured claimants with pending values. 4.8 million Series A warrants have an exercise price of $73.44 expire September 2024, and 2.4 million Series B warrants with an exercise price of $83.45 expire September 2025. $2.4 billion in senior unsecured notes have been equitized. The restructuring resulted in a reduction of $3.0 billion in debt.
Lynn Peterson has assumed the role of CEO with James Henderson as CFO and Chip Rimer as COO. The new board of directors include Kevin McCarthy (Chairman), Lynn Peterson, Janet L. Carrig, Susan Cunningham, Paul Korus, Daniel Rice, and Anne Taylor. New common stock will commence trading on the NYSE exchange under the symbol WLL on September 2, 2020. Moelis acted as a financial advisor.