Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Cenveo – Court Approves Exit ABL Facility of $175 Million and Exit Term Facility of $236 Million

0
0

August 23, 2018 – The Court hearing the Cenveo case approved the Debtor’s motion [Docket No. 691] to enter into commitment letters, and related fee letters, pertaining to the provision of exit financing, notably (i) for a fully underwritten $175 million commitment for a senior secured asset-based revolving credit facility (the “Exit ABL Facility”) and (ii) for a fully committed $236 million commitment for a senior secured first lien term loan credit facility (the “Exit Term Facility” and, together with the Exit ABL Facility, the “Exit Facilities”). On August 9, 2018, Cenveo filed a Form 8-K which further describes the Exit Facilities, notably disclosing that, “The committed financing under the Exit Term Facility will be funded with original issue discount equal to 4.00% of the principal amount of the Exit Term Facility and will accrue interest at either a base rate plus a margin of 8.00% or the LIBOR rate plus a margin of 9.00%, which margins shall increase annually by 0.50% commencing with the first anniversary of the closing date of the Exit Term Facility and on each anniversary thereafter. In the event of certain prepayments of the principal of the Exit Term Facility, a prepayment fee will be payable to the lenders in an amount equal to (i) 3.00% of the principal amount prepaid if such prepayment is made prior to the first anniversary of the closing date of the Exit Term Facility, (ii) 2.00% of the principal amount prepaid if such prepayment is made on or after the first anniversary of the closing date of the Exit Term Facility, but prior to the second anniversary of the closing date of the Exit Term Facility, and (iii) 1.00% of the principal amount prepaid if such prepayment is made on or after the second anniversary of the closing date of the Exit Term Facility, but prior to the third anniversary of the closing date of the Exit Term Facility. Principal under the Exit Term Facility will amortize in an amount equal to 5.00% per annum of the original principal amount of the Exit Term Facility, with such payments commencing on June 30, 2019, and the Exit Term Facility will mature on the fifth anniversary of the closing date. In addition, the Company will make annual principal payments commencing with the year ending December 31, 2019 in an amount equal to 90% of the Company’s excess cash flow….The material terms of the Exit ABL Facility are being finalized and will be disclosed in advance of the Bankruptcy Court’s hearing to consider confirmation of the Plan of Reorganization. The Court scheduled an August 16, 2018 hearing to consider the Fee Letters and a related seal motion.

Read more bankruptcy news.

The post Cenveo – Court Approves Exit ABL Facility of $175 Million and Exit Term Facility of $236 Million appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images