Prince Sports receives interim access to $1 million of DIP financing

By Jim Witters

Wilmington, Del., May 2 - Prince Sports, Inc. and its U.S. affiliates were granted interim access to $1 million of debtor-in-possession financing, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Other routine first-day motions were also granted.

DIP facility terms

As previously reported, Prince has secured a commitment for up to $2.5 million of DIP financing that will give its vendors and suppliers confidence in its position to operate in Chapter 11.

ABG-Prince, LLC is the DIP lender and the company's pre-bankruptcy lender.

The facility will mature on the earliest of Aug. 20, 30 days after entry of the interim order if a final order has not been entered, the date of repayment in full of the DIP loans and termination of the commitment and the effective date of a plan of reorganization.

Interest will be one-month Libor plus 800 basis points.

Prince Sports, a Bordentown, N.J-based sporting goods company, filed for bankruptcy on May 1. The Chapter 11 case number is 12-11439.

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