American Color gains final approval for $135 million DIP

By Jennifer Lanning Drey

Portland, Ore., Aug. 13 - American Color Graphics, Inc. said it obtained final approval for its $135 million debtor-in-possession credit facility Wednesday from the U.S. Bankruptcy Court for the District of Delaware.

The proceeds of the financing will be used to refinance American Color's existing first-lien debt and meet post-bankruptcy obligations.

Additionally, the financing will be used to fund the company's ongoing operations in the United States and Canada during the pre-packed reorganization process, which is being used to implement a merger with Baltimore-based Vertis Communications.

American Color's DIP facility will mature on the earlier of 60 days after the bankruptcy filing date or on the effective date of a plan of reorganization.

Interest will be Base rate plus 500 basis points.

Vertis also gained final court approval on Wednesday for access to its $380 million DIP provided by GE Commercial Finance.

American Color Graphics is a Brentwood, Tenn., pre-media and print company. Its Chapter 11 case number is 08-11467.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.