Hilex Poly granted final approval for $140 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., May 30 - Hilex Poly Co. LLC was granted final court approval of its $140 million debtor-in-possession facility from General Electric Corp. and Morgan Stanley Senior Funding, Inc., according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the DIP facility includes a $90 million revolving facility and a $50 million term loan. The facility includes a $15 million letter-of-credit subfacility.

The DIP commitment will terminate on the earliest of one year from the bankruptcy filing date, upon the confirmation of a plan of reorganization acceptable to the lenders and upon the sale of substantially all of the company's assets.

Proceeds will be used to repay pre-bankruptcy debt and related fees and for working capital and general corporate purposes.

Interest on the revolver will be Libor plus 350 basis points, with a 290 bps floor. Interest on the term loan will be Libor plus 800 bps, with a 400 bps floor.

Hilex, a Hartsville, S.C., plastic bag company, filed for bankruptcy on May 6. Its Chapter 11 case number is 08-10890.

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