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Robertshaw gets final court approval of $56 million DIP financing
By Sarah Lizee
Olympia, Wash., March 21 – Robertshaw US Holding Corp. received final approval of $56 million in debtor-in-possession financing from its prepetition first-out lenders, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.
As a reminder, Robertshaw has entered into a restructuring support agreement with a group of lenders that hold about 85% of the debtors’ first-out tranche and about 49% of the debtors’ second-out tranche of a super-priority credit facility with Acquiom Agency Services LLC and Seaport Loan Products LLC as agents.
The RSA is also supported by One Rock Capital Partners, LLC, which holds about 15% of the first-out tranche and 3% of the second-out tranche.
The informal lender group and One Rock Capital put forward a $273 million stalking horse credit bid to recapitalize the business.
The DIP term loans will bear PIK interest quarterly at a rate of 9.5% per annum, and cash interest quarterly at term SOFR for the interest period in effect for the borrowing plus the applicable term SOFR adjustment plus 100 bps per annum.
There is a 5% commitment fee, a 1.5% commitment fee, a 1.5% backstop fee and a 5% exit fee, each payable in kind.
The company has also received court approval to access cash collateral that prepetition first-out and second-out secured lenders have an interest in.
Robertshaw is an Itasca, Ill.-based designer and manufacturer of systems and controls used in residential and commercial appliances, HVAC and transportation applications. The company filed bankruptcy on Feb. 15 under Chapter 11 case number 24-90052.
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