Portola Packaging $79 million DIP facility approved

By Caroline Salls

Pittsburgh, Sept. 23 - Portola Packaging, Inc. received final court approval of its $79 million of debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

General Electric Capital Corp. and Wayzata Investment Partners are the DIP facility agents.

The DIP facility includes a $50 million first-lien term loan and an up to $29 million second-lien term loan.

Interest on the second-lien loan will be 12%, and interest on the first-lien loan will be a variable rate of 2.5% plus a floating rate equal to the higher of the Base rate or the Federal Funds rate plus 50 basis points.

The facility will mature on the effective date of Portola's pre-packaged plan of reorganization.

Portola Packaging, a Batavia, Ill.-based designer, manufacturer and marketer of tamper-evident plastic closures, bottles and equipment for the beverage food industries and plastic closures and containers for the cosmetics industry, filed for bankruptcy on Aug. 27. Its Chapter 11 case number is 08-12001.

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