Sbarro given final court authorization for $20 million DIP financing

By Kali Hays

New York, April 25 - Sbarro, LLC obtained final approval of its proposed $20 million debtor-in-possession financing, according to an attorney familiar with the case.

As previously reported, the company received interim approval of the loan on March 12.

The six-month financing will convert to an exit facility upon completion of the company's restructuring and will then carry a five-year term.

Interest on the DIP loan will be either Libor plus 800 basis points with a 2% Libor floor or Base rate plus 700 bps with a 3% Base rate floor.

Sbarro, a Melville, N.Y.-based quick-service Italian restaurant chain, filed for bankruptcy on March 10. The Chapter 11 case number is 14-10557.

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