The Walking Company Holdings filed with the U.S. Bankruptcy Court a motion to approve debtor in possession financing, approving postpetition financing, authorizing use of cash collateral, granting liens and providing superpriority administrative expense status, granting adequate protection, and modifying automatic stay.
The lead borrower is The Walking Company (the ‘Lead Borrower’ or ‘TWC’), and the remaining borrowers are Footsmart, and Big Dog USA, (‘Bi Do’). The Walking Company Holdings is party to the DIP Facility as the parent. The D.I.P. agent and Lender is Wells Fargo Bank, National Association. The motion explains, “By this Motion, the Debtors seek authority to consummate a new $57.25 million senior, secured debtor-in-possession financing facility (the ‘DIP Facility’) with Wells Fargo Bank, National Association on the terms set forth in the DIP Agreement, consisting of a revolving facility in an amount up to $50 million and a term loan facility in an amount up to $7.25 million. The proceeds of the DIP Facility will be used to repay the existing Prepetition Revolving Credit Obligations and Prepetition Term Loan Obligations, and to provide continued access to financing for the Debtors on a postpetition basis pending consummation of the Debtors’ chapter 11 reorganization plan….Revolver borrowings under the DIP Facility for purposes of the Interim Order shall not exceed $25 million. The term loan under the DIP Facility is subject to entry of the Final Order….All Obligations under the Term Loan shall bear interest on the Daily Balance thereof at a rate per annum equal to the Term Loan Interest Rate (i.e., greater of (A) LIBOR Rate and (B) 1% plus (ii) 10.50%). Usual and customary commitment and Letter of Credit fees for facilities of this type and purpose, including a closing fee of $250,000 payable to the DIP Agent on account of the revolving facility and $36,250 payable to the DIP Term Agent on account of the term facility.” The Court scheduled a March 07, 2018 hearing to consider the financing motion.
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