Nine West Holdings filed with the U.S. Bankruptcy Court a motion for entry of interim and final orders authorizing the Debtors to obtain post-petition financing, authorizing the Debtors to use cash collateral, granting liens and providing super-priority administrative expense status, granting adequate protection to the pre-petition secured parties and scheduling a final hearing.
The motion explains, “By this motion, the Debtors seek approval of the $247,523,512.50 ABL/FILO DIP Facility provided by the Prepetition ABL Lenders…consisting of a revolving credit facility of up to $225 million and a first in, last out term facility (a ‘FILO’) in the amount of approximately $22.5 million (the ‘DIP FILO’) and the $50 million Term DIP Facility provided by members of the Ad Hoc Group of Secured Term Loan Lenders (the ‘Secured Lender Group’), the Ad Hoc Crossover Group of Secured and Unsecured Term Loan Lenders (the ‘Crossover Lender Group’), and Brigade Capital Management, LP (‘Brigade’) on a pro rata basis by Prepetition Secured Term Loan…holdings, which will provide the Debtors with $50 million of new-money financing (and an immediate $25 million upon entry of the Interim Order). ”
In addition, “Together, these two groups of stakeholders currently hold the Debtors’ Prepetition ABL Facility, more than 78 percent of the Debtors’ Prepetition Secured Term Loan, and more than 89 percent of the Debtors’ Unsecured Term Loan, which will help the Debtors to avoid potentially value destructive priming fight… Loans will bear interest, at the option of the Borrower, at one of the following rates: if a Revolving Loan is a Base Rate Loan, the Base Rate plus 2.50%; if a Revolving Loan that is a Eurodollar Rate Loan, the Eurodollar Rate plus 3.50%; or if the FILO Loan, the greater of (A) the Eurodollar Rate and (B) 1.0%, plus 9.30%.”
The Court subsequently granted interim approval to the financing motion.
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