OCA gets extension to interim DIP approval pending April 26 final hearing

By Caroline Salls

Pittsburgh, April 7 - OCA, Inc. obtained a bridge extension of its interim use of debtor-in-possession financing until the April 26 final DIP hearing, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Louisiana.

The court initially gave OCA interim access to the DIP on March 17, with the final hearing originally scheduled for April 5.

The interim DIP order allowed the company to use $3 million of a revolving credit facility in the first week of access and $7 million in the second week.

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 rate plus 250 basis points, and interest on the term loan will be Prime rate 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 March 14. The Chapter 11 case number is 06-10179.

© 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.