The US Bankruptcy Court gave an order to Osage Exploration and Development, Inc. to obtain DIP financing on final basis on February 26, 2016. As per the order, the debtor has been authorized to obtain a multiple draw term loan facility in the amount of $1.40 million from Apollo Investment Corporation. The DIP loan would carry an interest rate of 8% p.a., along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a facility fee of 2% of the principal amount of DIP facility payable on the date of applicable funding and exit fee of 2% of total amount advanced payable upon maturity. The DIP facility would mature either on April 25, 2016 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 $0.08 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral.

The proceeds of the DIP facility will be used for working capital needs and general purpose. Michael S. Haynes of Gardere Wynne Sewell LLP acted as legal counsel for the DIP lender.