RadioShack eyes interim authorization to use $14 million of DIP loan

By Kali Hays

New York, Feb. 6 – RadioShack Corp. is seeking interim access to $14 million of a proposed $285.33 million debtor-in-possession facility from its current ABL lender group, led by DW Partners, LP, and the use of cash collateral, according to a Feb. 5 motion with the U.S. Bankruptcy Court for the District of Delaware.

The DIP facility includes a rollup of the company’s prepetition revolver, letters of credit and FILO facility and will also provide up to $20 million of incremental borrowing capacity.

Interest on the facility will be Libor plus 650 basis points with a 1% Libor floor.

The maturity date of the loan will be the earlier of one year after the entry of a final order approving the DIP financing and the effective date of a Chapter 11 plan.

Milestones in the credit agreement include RadioShack obtaining approval of bid procedures for a going concern/liquidation sale of its assets within two weeks of the petition date, a related sale being approved within 45 days of the petition date and a close of the sale within 10 days of a sale approval order.

Cantor Fitzgerald Securities is the administrative and collateral agent.

The company asked that a final hearing be scheduled no later than two weeks after entry of an interim order.

RadioShack is a Fort Worth, Texas technology retailer that filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 15-10197.

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