Heating Oil Partners given interim access to $35 million of DIP facility

New York, Sept. 26 - Heating Oil Partners, LP was approved to use up to $35 million of its debtor-in-possession credit facility on an interim basis.

A final hearing to authorize access to the full $115 million is set for Oct. 14, according to an order filed with the U.S. Bankruptcy Court for the District of Connecticut Monday.

Of the $35 million, Heating Oil can use $25 million for letters of credit and $5 million for swingline loans.

The DIP will run for 18 months unless the Chapter 11 proceedings are completed earlier.

Interest will be at Libor plus 300 basis points, Libor plus 600 basis points and Libor plus 1,000 basis points, depending on how much is borrowed compared to the borrowing base.

The DIP facility will be used for working capital.

Bank of America will lend $40 million of the total, Stanfield Capital Partners LLC will lend $25 million, Ore Hill Hub Fund Ltd. will lend $20 million and Credit Suisse, Cayman Islands Branch and Deutsche Bank Trust Co. Americas will each lend $15 million.

Heating Oil Partners filed for Chapter 11 on Monday. Its case number is 05-51271.

The residential heating oil distributor, the operating subsidiary of Toronto-based Heating Oil Partners Income Fund, has also filed in Canada under the Companies' Creditors Arrangement Act.

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