OCA granted interim DIP approval to use $3 million first week, $7 million second week

By Caroline Salls

Pittsburgh, March 17 - OCA, Inc. obtained court approval for interim access to its debtor-in-possession financing that will allow it to use $3 million of a revolving credit facility in the first week of access and $7 million in the second week, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Louisiana.

A final hearing is scheduled for April 5.

The final DIP will include a $15 million revolver and a $91.7 million term loan, $85 million to be drawn immediately and $16.7 million to be delayed.

Proceeds will be used for working capital and for general corporate purposes. The final $91.7 million term loan will be used to refinance the pre-bankruptcy bank borrowings.

Silver Point Finance, LLC will be arranger for the DIP facility, and Bank of America will be administrative and collateral agent.

Interest on the revolver will be Prime plus 250 basis points, and interest on the term loan will be Prime plus 350 bps.

The unused fee is 75 bps. A facility fee of 150 bps is payable for the revolver on closing.

Maturity is six months unless OCA exits Chapter 11 in less than six months.

OCA, a Metairie, La., provider of business services to orthodontic and dental practices, filed for bankruptcy on Tuesday. The Chapter 11 case number is 06-10179.

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