Midstates Petroleum filed with the U.S. Bankruptcy Court a Chapter 11 plan of reorganization and related disclosure statement that showed the plan will significantly reduce the debtors’ leverage through, among other things, a modification of the terms of the first lien credit facility and the equitization of all the debt junior to the first lien credit facility

The plan proposes, among other things, the first lien credit facility, the second lien notes, or the third lien notes will be paid in full, in cash. The first lien lenders will receive (i) approximately $82 million in cash and (ii) a new exit credit facility in the amount of $170 million.

According to a related 8-K filing, the exit facility will have an initial borrowing base of $170 million with no borrowing base redeterminations to occur until April 2018. The exit financing lender group is led by SunTrust Bank as administrative agent.

The exit facility will have an initial borrowing base of $170 million with no borrowing base redeterminations to occur until April 2018 (provided certain conditions are met) and semiannual borrowing base redeterminations thereafter. The exit facility will mature on the earlier of September 30, 2020, or 4 years since the plan effective date, with interest payable at LIBOR plus 4.50% per annum, subject to a 1.00% LIBOR floor.

The exit facility will be secured by first priority mortgages on at least 95% of the proved oil and gas reserves and all other oil and gas properties included in the most recently delivered reserve report, pledges of capital stock, a first priority security interest in the cash, cash equivalents, deposit, securities and other similar accounts, and a first-priority perfected security interest in substantially all other tangible and intangible assets (including but not limited to as-extracted collateral, accounts receivable, inventory, equipment, general intangibles, investment property, intellectual property, real property and the proceeds of the foregoing).