Dura sets Tuesday launch for $300 million DIP

By Sara Rosenberg

New York, Nov. 9 - Dura Automotive Systems, Inc. has scheduled a bank meeting for Tuesday to launch its proposed $300 million debtor-in-possession financing facility, according to a market source.

Goldman Sachs, GE Capital and Barclays are the lead banks on the deal.

The facility consists of a $130 million asset-based revolver, a $150 million term loan B and a $20 million synthetic letter-of-credit facility.

According to various court documents, the revolver is expected to carry an interest rate of Libor plus 175 basis points, and the term loan B and synthetic letter-of-credit facility are expected to carry an interest rate of Libor plus 250 bps.

However, lenders are interested in the term loan B and synthetic letter-of-credit facility more in the Libor plus 300 to 350 bps context, the source added.

Dura has already obtained interim court approval to use up to $50 million of its DIP and a final hearing on the DIP is scheduled for Nov. 20.

Proceeds will be used to fund normal business operations and continue the company's operational restructuring program initiated in February 2006.

Dura is a Rochester Hills, Mich.-based automotive parts maker.

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