Integrated Electrical granted final approval of $80 million DIP

By Caroline Salls

Pittsburgh, March 28 - Integrated Electrical Services, Inc. obtained final court approval for its $80 million revolving debtor-in-possession financing from Bank of America, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The DIP includes a $72 million sub-limit for letters of credit.

Proceeds will be used to supplement the company's existing liquidity and allow Integrated Electrical to meet its obligations related to the operation of its businesses, fulfill its payroll obligations and pay vendors for goods and services.

There can be no more than $22 million of letters of credit outstanding at any time.

The DIP has a term of the earliest of 12 months; the effective date of an approved plan of reorganization or termination of the DIP agreement.

Interest is Libor plus 350 basis points.

Integrated Electrical will pay a $1 million closing fee.

Integrated Electrical Services, a Houston-based provider of electrical services to the commercial, industrial and residential markets, filed for bankruptcy on Feb. 14. Its Chapter 11 case number is 06-30602.

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