Oneida $170 million exit facility commitment letter approved

By Caroline Salls

Pittsburgh, April 27 - Oneida Ltd. obtained court approval to enter into a commitment letter for $170 million in exit financing from Credit Suisse, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The exit facility will consist of an $80 million five-year revolving credit facility, including a $35 million letter-of-credit subfacility, and a $90 million six-year term loan.

Interest on the revolver will be Libor plus 150 basis points, but is subject to change based on excess availability.

If excess availability is less than $10 million, interest will be Libor plus 175 bps; between $10 million and $20 million, interest will be Libor plus 150 bps; between $20 million and $40 million, interest will be Libor plus 125 bps; and if excess availability is more than $40 million, interest will be Libor plus 100 bps.

There will be a 25 bps commitment fee on the revolver.

Interest on the term loan will be Libor plus 700 bps, but is subject to change based on the leverage ratio.

For a leverage ratio of between 3.5 times and 4.0 times, the interest rate will be Libor plus 650 bps, and for leverage less than 3.5 times, interest will be Libor plus 600 bps.

If the term loan is prepaid in year one, it will be prepaid at a 103% premium, at 101% in year two and at par thereafter.

The company's pre-packaged plan of reorganization provides for repayment in full of a previous $9.9 million outstanding debtor-in-possession facility and a $115.3 million tranche A loan with exit facility proceeds.

Oneida, an Oneida, N.Y.-based maker of flatware, dinnerware, crystal and metal serving pieces, made a pre-packaged bankruptcy filing on March 19. Its Chapter 11 case number is 06-10489.

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