iQor exits bankruptcy with up to $477.5 million in exit, new-money loans

By Sarah Lizee

Olympia, Wash., Nov. 20 – iQor Holdings Inc. emerged from Chapter 11 bankruptcy with an $80 million three-year exit asset-based revolver arranged by Wells Fargo Bank, NA and a $75 million to $97.5 million four-year exit first-lien term facility and $300 million five-year new money first-lien term loan with existing first-lien lenders, according to the company’s restructuring support agreement.

The facilities were entered into on the plan of arrangement’s effective date, Nov. 19.

The ABL has a $20 million accordion, and provides for a $12 million letter-of-credit subfacility and $8 million for swingline loans.

Interest on the ABL ranges from Libor plus 250 basis points to 300 bps, depending on average excess availability. There is a 37.5 bps fee on unused amounts.

Interest on the new money and exit term loans is Libor plus 750 bps, subject to a 1% Libor floor.

For the new money term loan, during the first two years following the plan’s effective date, the company may toggle interest to payment in kind, subject to certain conditions. In this case, interest would increase to Libor plus 1,000 bps, comprised of Libor plus 500 bps paid in cash and 5% paid in kind.

The new money and exit term loans have 1% amortization, payable quarterly. Call protection is 103 in year one, 102 in year two, 101 in the third year and par after that.

iQor is a St. Petersburg, Fla.-based provider of business process outsourcing services. The company filed Chapter 11 bankruptcy on Sept. 10 under case number 20-34500.

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