Recycled Paper Greetings obtains final OK for $10 million DIP loan

By Jennifer Lanning Drey

Portland, Ore., Jan. 23 - Recycled Paper Greetings, Inc. was granted final court approval of its $10 million of debtor-in-possession financing from American Greetings Corp., according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, proceeds of the DIP loan will be used for working capital, for general corporate purposes and to fund the company's bankruptcy case.

Interest on non-Eurodollar loans will be equal to the greater of the Prime rate, the Federal Funds effective rate plus 50 basis points, the Libor plus statutory reserves plus 100 bps and 4%, plus 5% per year.

Interest on Eurodollar loans will be Libor plus statutory reserves plus 600 bps.

The DIP facility will mature on May 31.

Recycled Paper will pay a $200,000 fee to the DIP lenders and a $325,000 DIP agent fee.

Recycled Paper Greetings, a Chicago-based greeting card company, filed for bankruptcy on Jan. 2. Its Chapter 11 case number is 09-10002.

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