Sharper Image granted interim access to $35 million of DIP loan; final hearing March 7

By Caroline Salls

Pittsburgh, Feb. 21 - Sharper Image Corp. obtained interim access to $35 million of its proposed $60 million in debtor-in-possession financing from Wells Fargo Retail Finance, LLC, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for March 7.

The revolving credit facility will include a $10 million sublimit for letters of credit.

Interest on a first-in last-out advance of the lesser of $17 million or the net appraised liquidation value of the company's registered trade names will be Base rate plus 450 basis points, and interest on all other DIP loans will be Base rate plus 150 bps.

The DIP loan will mature on Aug. 20 or on the effective date of a plan of reorganization.

Proceeds will be used to fund the company's operating expenses.

Sharper Image, a San Francisco-based specialty retailer, filed for bankruptcy on Feb. 19. Its Chapter 11 case number is 08-10322.

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