RG Steel gains access to $30 million of interim Wells Fargo financing

By Jim Witters

Wilmington, Del., June 1 - RG Steel, LLC received court approval for interim access to $30 million of debtor-in-possession financing from Wells Fargo Capital Finance, LLC, according to documents filed June 1 with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, RG Steel obtained a commitment for up to $50 million of DIP financing in conjunction with its bankruptcy filing.

The company said the facility also removes reserves previously imposed on its existing credit facility.

In addition to the $50 million of supplemental loans, the facility includes up to $450 million of revolving A loans under the existing facility and $25 million of revolving B loans from the existing facility.

The DIP loan is scheduled to mature on July 27, 2012, subject to an extension to Aug. 14, 2012.

Interest on supplemental loans and revolving A loans will be the base rate plus 250 basis points. Interest on revolving B loans will be 13%.

A final DIP hearing is scheduled for 11 a.m. ET on June 21.

RG Steel, a Sparrows Point, Md., flat-rolled steel processor, filed for bankruptcy on May 31. The Chapter 11 case number is 12-11661.

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