Pioneer Energy Services Corp.

Pioneer Energy Service Corp. said that the company and certain of its subsidiaries have reached an agreement with its key stakeholders regarding the terms of a comprehensive financial restructuring, including the elimination of its existing notes through a debt-for-equity conversion. To implement the financial restructuring, Pioneer also announced that it had filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas to effectuate its pre-packaged Plan of Reorganization. 

Pioneer intends to use the Chapter 11 process to implement a balance sheet restructuring by significantly reducing the company's long-term debt and related interest costs, providing access to additional financing and establishing a strong capital structure. In addition to equitizing approximately $300 million in aggregate amount of existing notes, Pioneer will raise (i) up to $125 million of new capital through a rights offering of new convertible debt from eligible noteholders and shareholders, a substantial portion of which will be backstopped by certain existing holders and (ii) approximately $78 million of new senior secured notes to be provided by certain existing noteholders.

Pioneer has received a commitment for $75 million in debtor-in-possession financing from PNC Bank.