RadioShack granted interim use of up to $29 million in DIP financing

By Kali Hays

New York, Feb. 10 – RadioShack Corp. received interim access of up to $29 million of a proposed $285.33 million debtor-in-possession facility and the use of cash collateral, according to a Feb. 9 order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the lender is ABL lender group, led by DW Partners, LP.

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.

A final hearing is scheduled for Feb. 20.

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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