| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers B > Headlines for Bakers Footwear Group Inc. > News item |
Bakers Footwear granted approval of $9.5 million replacement DIP loan
By Jim Witters
Wilmington, Del., Nov. 15 - Bakers Footwear Group, Inc. received court approval to amend its post-bankruptcy credit agreement to reflect the terms of a $9.5 million replacement financing facility with Salus Capital Partners, LLC, according to documents filed Nov. 15 with the U.S. Bankruptcy Court for the Eastern District of Missouri.
The order allows the company to obtain replacement financing from Salus and to execute documents under which the existing post-bankruptcy facility will be assigned to Salus.
Bakers said the assignment documents include a release of claims against existing DIP lender Crystal Financial LLC.
The replacement facility includes a revolving loan of up to $8 million, which is subject to a borrowing base and budget.
The DIP also includes a $500,000 letter-of-credit sublimit and a $1.5 million term loan.
Interest on the revolving loan is 8%. Interest on the term loan is 16%.
The maturity date is 12 months following closing for the revolver and the earlier of Dec. 22 and the closing of a lease auction for the term loan.
All obligations will be due upon closing of a sale of substantially all of Bakers' assets or the effective date of its plan of reorganization.
As previously reported, Bakers had a $22 million DIP financing commitment from Crystal Financial. As of Oct. 24, the company had been granted interim access to $8.7 million of that loan.
Interest on the Crystal DIP financing was Libor plus 800 basis points, with the rate increasing to Libor plus 900 bps for specified obligations.
The Crystal facility was scheduled to terminate on the earlier of 30 days after the closing unless a final order has been entered by that date, six months after closing, the occurrence of an event of default and the closing of a sale of all or substantially all of the company's assets.
Bakers, a St. Louis-based footwear retailer, filed for bankruptcy on Oct. 3. Its Chapter 11 case number is 12-49658.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.