Allied Holdings granted final approval to refinance DIP

By Caroline Salls

Pittsburgh, May 25 - Allied Holdings, Inc. obtained final court approval to restructure its $315 million debtor-in-possession facility to add a $50 million second-lien term loan, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Georgia.

The new $50 million second-lien term loan will be used to partially repay the first-lien DIP loans.

The restructured DIP facility consists of $265 million in first-lien facilities, including a $180 million term loan, down from $230 million, a $50 million synthetic letter-of-credit facility and a $35 million revolving credit facility.

The DIP facility will still be convertible into exit financing, and no additional fees will be charged by the lender.

As previously reported, interest on the second-lien term loan was talked at Libor plus 750 basis points.

Pricing on the first-lien term loan and synthetic letter-of credit facility is Libor plus 400 bps, and the revolver is priced at Libor plus 200 bps.

Goldman Sachs is the lead bank on the deal.

Allied, a Decatur, Ga., distributor of new and used vehicles, filed for bankruptcy on Aug. 1, 2005. Its Chapter 11 case number is 05-12515.

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