Pacific Sunwear granted final access to $100 million in DIP financing

By Caroline Salls

Pittsburgh, May 24 – Pacific Sunwear of California, Inc. obtained final court approval for $100 million of debtor-in-possession financing from revolving credit facility lender Wells Fargo Bank, NA, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The company said the DIP financing will allow it to draw capital as needed to manage seasonal swings in cash flow.

The facility will mature on the earliest of April 7, 2017, the effective date of a Chapter 11 plan and the closing of a sale of all or substantially all of the company’s assets.

Interest will accrue at the Base rate plus 300 basis points.

Wells Fargo also committed to provide a $100 million five-year revolving line of credit effective upon the company’s emergence from Chapter 11.

Anaheim, Calif.-based Pacific Sunwear is a specialty retailer of action-sport-inspired casual apparel, accessories and footwear for teens and young adults. The company filed bankruptcy on April 7 under Chapter 11 case number 16-10882.

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