American Home Mortgage granted final court approval on $50 million DIP facility

By Reshmi Basu

New York, Sept. 4 - American Home Mortgage Holdings, Inc. received final court approval for its $50 million revolving line of credit debtor-in-possession facility, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, private equity firm WL Ross & Co. LLC through its fund, WLR Recovery Fund III, LP, is the DIP lender.

DIP proceeds will be used for working capital and general corporate purposes during the company's Chapter 11 case.

The DIP facility will mature on the earlier of 12 months after the closing date and upon confirmation of a plan of reorganization or liquidation.

Interest will be Libor plus 300 basis points.

American Home will pay a facility fee of 50 bps on the first $35 million of the DIP facility, a commitment fee of 1% of the entire DIP facility and a $50,000 administrative agent fee.

American Home, a Melville, N.Y.-based real estate investment trust focused on residential mortgage loans, filed for bankruptcy on Aug. 6. Its Chapter 11 case number is 07-11047.

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