The US Bankruptcy Court gave an order to Rosehill Resources Inc. to obtain DIP financing on final basis on August 28, 2020. As per the order, the debtor has been authorized to obtain a new money convertible delayed-draw term loan facility in the total facility amount of $17.5 million from U.S. Bank National Association and acting as the administrative agent. 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 an upfront fees of $0.18 million and backstop fees of 7% p.a. The DIP facility would mature either on January 22, 2021 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets or the date of Payment in Full by the Debtors of all Obligations under the DIP Credit agreement or the acceleration of the Loans and the termination of the commitments pursuant to an event of default, 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 $1.75 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The proceeds of DIP financing would be used to fund working capital requirements, to pay costs and fees under the DIP Facility and the Interim Order, for other general corporate purposes, and to satisfy the costs and expenses of administering the Chapter 11 Cases in accordance with the DIP Budget.