The motion requesting DIP financing approval [Docket No. 23] stated, “The Debtors need access to additional liquidity in the near-term…the Debtors have only approximately $8.1mn of unrestricted cash on hand….If approved, the Debtors will use the proceeds of the DIP Credit Facility to, among other things, honor employee wages and benefits, procure goods and services, fund general and corporate operating needs and the administration of these chapter 11 cases.”
- The DIP Credit Facility shall accrue interest per annum at a variable interest rate, which is set at Parker’s election at: (a) the one-month London Interbank Offered Rate (“LIBOR”), plus 4.00% (“Applicable LIBOR Margin”); or (b) the DIP Agent’s prime rate, plus 3.00% , in each case payable in cash monthly. Fees on Outstanding DIP L/Cs: All outstanding DIP L/Cs will also incur a fee at a per annum rate equal to the Applicable LIBOR Margin.
- Default Rate: Default interest rate of an additional 2.0% per annum upon the occurrence and during the continuance of an Event of Default.
- Undrawn Facility Fee: An undrawn facility fee equal to 0.50% of the undrawn portion of the DIP Credit Facility, accruing daily and payable monthly in cash in arrears.
- Fronting Fee: A fronting fee in an amount to be agreed (but in any event not to exceed 0.125% per annum) on the then available face amount of each DIP L/C, to be payable monthly in arrears to the account of the relevant Issuing Bank.
- DIP Agent and DIP Lender Fees: All reasonable and documented out-of-pocket fees and expenses of the DIP Agent, the Issuing Banks, and the DIP Lenders associated with: (a) the preparation, execution, delivery, and administration of the DIP Documents incurred on or after the effective date of the DIP Credit Facility (the “DIP Effective Date”); (b) the enforcement of the Loan Documents (as defined in the DIP Credit Agreement); and (c) with respect to the DIP Agent only, any field exams and inventory appraisals required to be undertaken.
- Fee Letter: Fees will be earned and paid on the closing date of the DIP Credit Facility to the DIP Secured Parties on account of the DIP Credit Facility as contained in the Budget line item “Interest and Bank Fees” pursuant to the confidential fee letter, substantially in the form annexed as Exhibit 3 to Exhibit A (the “Fee Letter”).
- Entry by the Court of the Final DIP Order within 40 days after the Petition Date
- Entry by the Court of orders approving (i) the Disclosure Statement, (ii) the Rights Offering Procedures, and (iii) an order approving the Exit Facility Commitment Letter and Exit Facility Fee Letter, in each case within 45 days after the Petition Date
- Entry by the Court of the confirmation order by no later than 91 days after the Petition Date
- The effective date of the Plan shall have occurred by no later than the later of (i) 106 days after the Petition Date and (ii) 15 days after the confirmation order is entered.
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