J.G. Wentworth filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing the Debtors to enter into and perform, or cause to perform, the obligations under the commitment letter and related fee letter with respect to the new revolving credit facility (RCF), including the payment of certain fees and expenses, and to provide related indemnity.
The motion explains, “Subject to and in accordance with the terms and conditions set forth in the Commitment Letter, the New RCF Commitment Party committed to provide the commitment under the New RCF, which shall be evidenced in the New RCF Credit Agreement, pursuant to which the Borrower will obtain a new senior secured revolving credit facility in the maximum aggregate principal amount of $70.0 million and maturing on the date that is four (4) years after the date of the effectiveness of the New RCF ….The interest rates under the New RCF will be (i) at the Borrower’s option, Adjusted LIBOR, plus 5.00% or ABR plus 4.00% and (ii) 3.00% per annum on the average daily undrawn portion of the New RCF, as further described in the Term Sheet….The New RCF Commitment Party will act as sole and exclusive administrative agent and collateral agent.”
In addition, “In accordance with and as contemplated under the RSA and the Plan, as consideration for the New RCF Commitment Party’s commitment to provide the New RCF under the Commitment Letter, the Borrower and the Partnership agreed to pay (or cause to be paid) for the benefit of the New RCF Commitment Party, (a) a commitment fee of 4.00% of the aggregate maximum amount of the New RCF Commitment Party’s Commitment as of the date of the Fee Letter…(b) a closing fee of 4.00% of the aggregate maximum amount of the New RCF Commitment Party’s Commitment as of the date of the Fee Letter….The Commitment is integral to the consummation of the Plan. It ensures that capital required for the funding of the transactions contemplated by the Plan and for the Company’s go-forward business operations post-emergence is committed prior to confirmation. With this commitment secured, the Debtors may proceed quickly and efficiently toward confirmation, and avoid unnecessary and value-destructive delays that would disrupt operations, prolong these cases, and result in additional costs.”
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