LightSquared gets court approval for access to $40 million DIP financing

By Lisa Kerner

Charlotte, N.C., July 17 - LightSquared Inc. was granted final access to $40 million debtor-in-possession financing facility, according to documents filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, under the DIP facility, the borrower will be debtor One Dot Six Corp. The guarantors are LightSquared Inc., One Dot Four Corp. and One Dot Six TVCC Corp.

U.S. Bank NA is the administrative and collateral agent.

Interest is 11%, with a default rate of an additional 2% for the first 60 days following a default and an additional 5% thereafter.

The upfront fee is 3%. The exit fee is 2%.

The facility is scheduled to mature on the earliest of: the date on which all of the DIP obligations have been repaid in full; Nov. 15, 2013; the date of the closing of a sale of all or substantially all of the LightSquared assets or stock; the effective date of a confirmed plan of reorganization; or the date of termination of the commitments and/or acceleration of the DIP obligations following a default.

LightSquared, a Reston, Va.-based wholesale-only 4G-LTE network integrated with satellite coverage, filed for bankruptcy on May 14. Its Chapter 11 case number is 12-12080.

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