Reduction in Over $230 Million in Debt and Infusion of $45 Million in New Capital Positions Company for Long-Term Business Growth and Development

DALLAS–(BUSINESS WIRE)–Glass Mountain Pipeline Holdings LLC (the “Company” or “Glass Mountain”) announced today that, with the support of its equity sponsor GEPIF Glass Mountain Pipeline LLC (the “Sponsor”) and lenders holding 66.97% of the Company’s revolving and term loans (the “Consenting Lenders”), it has entered into a Restructuring Support Agreement (the “RSA”) that provides for the elimination of over $230 million in debt from the Company’s balance sheet and a $45 million investment from the Sponsor. Pursuant to the RSA, lenders will receive their pro rata share of (i) a $69,177,939.86 first lien term loan facility (the “New Term Loan Facility”) issued by a new borrower entity (the “New Borrower”) that will be the direct parent of Glass Mountain and Navigator Panhandle HoldCo LLC, and (ii) a cash payment of $44,038,698.89. The New Term Loan Facility will be secured by the collateral for the existing loans and a first-priority pledge of the equity interests of the New Borrower, its direct subsidiaries, and each guarantor.

The Company and its advisors continue to work with the Company’s lenders to gain 100% support of the transaction such that the RSA can be effectuated on an out-of-court basis in October 2021. To the extent that threshold cannot be achieved, the parties to the RSA have already agreed to a prepackaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. While the Company hopes to receive the support of 100% of its lenders, the Company anticipates that the chapter 11 plan, pursuant to which all general unsecured claims would be unimpaired and paid in full, would be confirmed and consummated quickly and efficiently. The Company does not anticipate any change in its day-to-day operations or the services it provides to its customers throughout this process.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Gray Reed & McGraw LLP are serving as legal counsel to the Company and PJT Partners LP is serving as the Company’s investment banker.

Akin Gump Strauss Hauer & Feld LLP is serving as legal counsel and Perella Weinberg Partners L.P. and Tudor, Pickering, Holt & Co. are serving as financial advisors to an ad hoc group of Consenting Lenders.

About Glass Mountain

Glass Mountain owns and operates a fully integrated pipeline system in the Anadarko region of Oklahoma and provides oil producers with comprehensive services, including crude oil gathering, transportation, and storage. Glass Mountain is headquartered in Dallas, Texas.

Forward-Looking Statements

Statements contained in this press release that express a belief, expectation, or intention, as well as those that are not historical fact, are forward-looking statements made in good faith that are subject to risks, uncertainties, and assumptions. These forward-looking statements are based on our current beliefs, intentions, and expectations. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events, or performance are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions, and uncertainties, which could cause actual results to differ materially from those expressed in these forward-looking statements. Our actual results, performance, or achievements could differ materially from those we express in the foregoing discussion as a result of a variety of factors, including general economic and business conditions and industry trends, levels and volatility of oil and gas prices, the continued demand for drilling services or production services in the geographic areas where we operate, the competitive nature of our business, technological advancements and trends in our industry, the loss of one or more of our major clients or a decrease in their demand for our services, future compliance with covenants under debt agreements, the continued availability of qualified personnel, the occurrence of cybersecurity incidents, the political, economic, regulatory, and other uncertainties encountered by our operations, and changes in, or our failure or inability to comply with, governmental regulations. These factors are not necessarily all the important factors that could affect us. Other unpredictable or unknown factors could also have material adverse effects on actual results of matters that are the subject of our forward-looking statements. All forward-looking statements speak only as of the date on which they are made and we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. We advise readers that they should recognize that important factors not referred to above could affect the accuracy of our forward-looking statements and use caution and common sense when considering our forward-looking statements.



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