HomeBanc $8.5 million DIP facility approved

By Caroline Salls

Pittsburgh, Sept. 14 - HomeBanc Mortgage Corp. obtained final court approval of $8.5 million in debtor-in-possession financing from JPMorgan Chase Bank, NA, according to a Thursday order from the U.S. Bankruptcy Court for the District of Delaware.

The DIP facility will be used for working capital and to fund the company's mortgage loan servicing advances. The DIP facility will mature on Nov. 20.

Interest will be Prime rate plus 125 basis points.

The minimum borrowing amount of the revolving credit facility will be $500,000, and loans will be made in multiples of $10,000 thereafter.

HomeBanc will pay a 50 bps commitment fee.

HomeBanc, an Atlanta-based mortgage banking business, filed for bankruptcy on Aug. 9. Its Chapter 11 case number is 07-11079.

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