Milacron granted final court OK for $135 million of DIP financing

By Jennifer Lanning Drey

Portland, Ore., April 6 - Milacron Inc. obtained final court approval of its $135 million of debtor-in-possession financing Monday from the U.S. Bankruptcy Court for the Southern District of Ohio, according to a source familiar with the case.

As previously reported, $80 million of the DIP financing comes through a term loan from Avenue Capital Group and funds managed by DDJ Capital Management LLC that will provide the company with $40 million in new funds. The financing also includes 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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