Reader's Digest receives final access to $150 million DIP facility

By Alice Popovici

New York, Oct. 7 - Reader's Digest Association, Inc. obtained full access to its $150 million debtor-in-possession facility, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company was previously granted interim access to $100 million of the facility.

As previously reported, JPMorgan Chase Bank, NA is the administrative agent, and J.P. Morgan Securities Inc. is the lead arranger.

The DIP loan has a term of nine months with one three-month extension option.

Pricing on the DIP loan is Libor plus 1,000 basis points with a 3.5% Libor floor.

Reader's Digest, a Pleasantville, N.Y., publishing company, filed for bankruptcy on Aug. 24. Its Chapter 11 case number is 09-23529.

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