Xtera Communications filed with the U.S. Bankruptcy Court a motion for entry of interim and final orders authorizing the debtors to obtain post-petition financing, granting liens and providing super-priority administrative expense status, granting adequate protection and scheduling a final hearing.
The D.I.P. facility consists of super-priority post-petition financing is made up of a term loan in the principal amount of up to $7,409,793. H.I.G. European Capital Partners is the D.I.P. lender, and Wilmington Trust is the administrative and collateral agent.
The motion explains, “The agreement with H.I.G. contemplates approximately $7.4 million in senior debtor in possession financing secured by substantially all assets of the Debtors to fund the Debtors through a sale process. Additionally, an affiliate of H.I.G. is acting as stalking horse bidder to purchase all of the Debtor’s assets for a purchase price of $10 million inclusive of amounts due under the DIP Financing.”
The motion continues, “Upon entry of an interim order approving the DIP Facility, the entire principal amount of the DIP Loans will be available to be borrowed by the Debtors for immediate deposit into a blocked account held by the DIP Agent in trust for the DIP Lenders….The DIP Loans will bear interest at a rate of Adjusted LIBOR (subject to a 1.00% floor) plus 6% per annum, which interest shall be paid in cash monthly (or weekly, at the Borrower’s option) and upon any repayment of prepayment of principal; provided that upon the occurrence of any event of default under the DIP Facility such interest rate margin shall automatically increase by an additional 2%.”
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