Hawker Beechcraft gets interim access to $300 million of DIP financing

By Caroline Salls

Pittsburgh, May 7 - Hawker Beechcraft, Inc. has been granted interim access to $300 million of its proposed $400 million of debtor-in-possession financing, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for May 30.

Credit Suisse AG, Cayman Islands Branch is the administrative agent and collateral agent for the DIP facility.

The facility consists of $400 million in delayed-draw loans, a portion of which may be applied to provide cash collateral for the issuance of letters of credit with a total maximum face amount of up to $75 million and cash collateralized in an amount equal to 104% of the face amount.

The DIP loan termination date will be the earliest of Dec. 15, 2012, the 35th day following the entry of the interim order unless the final order has been entered, the date of acceleration of any outstanding borrowings under an event of default, the first business day after the interim order expires or is terminated unless the final order has taken effect by then, conversion or dismissal of the Chapter 11 cases and the effective date of a plan of reorganization.

The drawn interest spread on the delayed draw loan will be Libor plus 800 basis points with a 175 bps Libor floor. A 300 bps original issue discount will be paid in full at closing based on the total commitment.

Hawker Beechcraft, a Wichita, Kan.-based manufacturer of business, special mission, light attack and trainer aircraft, filed for bankruptcy on May 3. The Chapter 11 case number is 12-11873.

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