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Centric Brands secures interim access to $130 million of DIP financing
By Caroline Salls
Pittsburgh, May 21 – Centric Brands Inc. obtained court approval to access $130 million of a proposed $435 million in debtor-in-possession financing on an interim basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.
The final hearing is scheduled for June 9.
The company said the DIP financing will enable it to continue to meet its financial obligations throughout this process to employees, licensors, suppliers and vendors.
The DIP financing is comprised of a $160 million term loan, of which $120 will be available on an interim basis, and a $275 million revolving credit facility, of which $10 million will be available on an interim basis.
U.S. Bank NA is the agent for the one-year term loan, which will accrue interest at the Base rate plus 750 basis points. ACF FINCO I LP is the agent for the one-year revolver, which will accrue interest at the Base rate plus 550 bps.
New York-based Centric Brands is a lifestyle brand collective that designs, sources, markets and sells kids, men’s and women’s apparel, accessories beauty, and entertainment. The company filed bankruptcy on May 18 under Chapter 11 case number 20-22637.
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