Milacron granted interim access to $95 million of DIP financing; final hearing April 6

By Caroline Salls

Pittsburgh, March 12 - Milacron Inc. was granted interim access to $95 million of its $135 million in total debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

The final hearing is scheduled for April 6.

As previously reported, Milacron has a commitment for $80 million in term loan financing from Avenue Capital Group and funds managed by DDJ Capital Management LLC that will provide the company with $40 million in new funds, as well as a $55 million revolving credit facility from General Electric Capital Corp. that replaces Milacron's pre-bankruptcy revolver.

According to court documents, interest on the Avenue/DDJ DIP loan is at Milacron's option, Base rate of the greater of 5.0% of, 0.5% in excess of the Federal Funds rate plus 1,500 bps, or Libor plus 1,500 bps, and 4%.

Interest on the GE Capital DIP loan is at Milacron's option, Base rate or Libor plus 600 bps.

Both loans mature on the earliest of 180 days after the start of the Chapter 11 case, the effective date of any confirmed plan of reorganization or liquidation, consummation of a sale of substantially all of the company's assets and the date of a case conversion or upon various defaults.

Milacron, a Cincinnati-based supplier of plastics-processing technologies and industrial fluids, filed for bankruptcy on March 10. Its Chapter 11 case number is 09-11235.

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