Dixie Electric – Seeks Approval of $17.5 million in DIP Financing, Interim Access to $15 million

November 2, 2018 – Dixie Electric filed a motion for interim and final orders authorizing the Debtors (a) to obtain debtor-in-possession (“DIP”) financing from DIP lenders Contrarian Capital Management, ING Capital, Mudrick Capital Management, Bank of America, ParFour Investment Management, and Partners Group Private Markets Credit Strategies S.A., and Wilmington Trust as administrative agent and collateral agent (the “DIP Agent,” and together with the parties named above, the “DIP Lenders”) and (b) to utilize cash collateral [Docket No. 14] 

 

The DIP financing motion explains, “The Debtors seek approval of, among other things, the DIP Financing, which consists of a senior secured superpriority debtor-in-possession term loan credit facility (the ‘DIP Facility’) in an aggregate principal amount of up to $17.5 million to be provided by the lenders party to the DIP Credit Agreement from time to time (the ‘DIP Lenders’). Prior to entry of the Final Order, the Debtors will be able to borrow up to $15 million under the DIP Facility, with the remaining balance available upon entry of the Final Order. The DIP Facility will accrue interest at the following interest rates: Floating interest rate of LIBOR + 10.00% per annum, payable monthly in cash; or in the event of a default, the otherwise applicable rate + 2.00%.”