Orleans Homebuilders' DIP facility granted final court approval

By Lisa Kerner

Charlotte, N.C., April 15 - Orleans Homebuilders, Inc.'s debtor-in-possession facility was approved by the U.S. Bankruptcy Court for the District of Delaware at a hearing on Thursday, according to an attorney close to the case.

As previously reported, in March the court granted the company interim access to up to $26 million of its DIP financing.

The interim DIP loan includes up to $11 million in cash funding and up to $15 million of letters of credit and will be used to finance Orleans' business expenses.

Prospect News previously reported that the DIP facility consists of a $40 million revolving credit facility and an $80 million term loan. The term loan will be rolled up from the company's pre-bankruptcy debt.

Interest on the revolver will be Libor plus 850 basis points with a 2% Libor floor, and interest on the term loan will be Libor plus 350 bps with a 2% Libor floor.

Orleans Homebuilders, a Bensalem, Pa.-based developer, builder and marketer of single-family homes, townhouses and condominiums, filed for bankruptcy on March 1 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-10684.

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