Lehman granted interim access to $200 million of DIP financing; final hearing Oct. 2

By Caroline Salls

Pittsburgh, Sept. 18 - Lehman Brothers Holdings Inc. received interim access to $200 million of its $450 million of debtor-in-possession financing from Barclays Bank plc, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for Oct. 2.

The DIP loan consists of a $250 million term loan and a $200 million revolving credit facility.

The facility will mature on the earliest of six months from closing, upon termination of the Barclays asset purchase agreement and upon the closing of a sale of Neuberger Berman.

Interest will be either Libor plus 600 basis points for the first 60 days from closing and Libor plus 750 bps thereafter, with a 3.5% Libor floor, or Base rate plus 500 bps for the first 60 days and Base rate plus 650 bps thereafter, with a 4.5% Base rate floor, at the lender's option.

New York-based Lehman Brothers Holdings is the fourth largest investment bank in the United States. The company filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.

© 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.