American Safety Razor gets interim access to $10 million of DIP loan

By Caroline Salls

Pittsburgh, July 30 - American Safety Razor Co., LLC was granted interim access to $10 million of its proposed $25 million debtor-in-possession facility, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Aug. 25.

The company said the DIP financing will be used together with more than $30 million in cash reserves to address working capital needs during the restructuring process.

UBS AG, Stamford Branch is the administrative agent on the DIP facility.

The facility will mature on Jan. 30, 2011. If there are no defaults, the facility can be extended to April 30, 2011 in exchange for payment of a 1% fee and extended another three months to July 30, 2011 in exchange for payment of a 2% fee.

The DIP loan was priced at Libor plus 550 basis points, with a 2.5% Libor floor.

American Safety Razor, a Cedar Knolls, N.J.-based producer of shaving, medical and industrial blades, filed for bankruptcy on July 28. The Chapter 11 case number is 10-12351.

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