Remy details $330 million exit facility, $225 million DIP

By Sara Rosenberg

New York, Sept. 5 - Remy Worldwide Holdings Inc. outlined details on its proposed $330 million exit financing credit facility and $225 million debtor-in-possession financing facility, according to a T-3/A filed with the Securities and Exchange Commission Wednesday.

Barclays is the lead arranger on the exit facility and the DIP.

The exit facility consists of a $125 million five-year asset-based revolver expected initially at Libor plus 200 basis points, a $150 million six-year first-lien term loan expected at Libor plus 400 bps and a $55 million 61/2-year second-lien term loan expected at Libor plus 700 bps.

Pricing on the revolver can range from Libor plus 175 bps to 225 bps, based on excess availability.

The revolver has a 37.5 bps commitment fee.

The second-lien term loan carries call protection of 102 in year one and 101 in year two.

Financial covenants will include maximum leverage, maximum capital expenditures, minimum EBITDA and minimum interest coverage.

As for the six-month DIP facility, that consists of a $125 million asset-based revolver expected initially at Libor plus 200 bps and a $100 million first-lien term loan expected at Libor plus 400 bps.

Pricing on the DIP revolver can range from Libor plus 175 bps to 225 bps, based on excess availability, and there is a 37.5 bps commitment fee.

The DIP has a six month extension option.

Financial covenants under the DIP will include maximum leverage, maximum capital expenditures and minimum EBITDA.

The exit facility and DIP commitment letters contain customary market flex provisions, which permit Barclays, subject to certain limitations, to adjust the terms and conditions, pricing and/or structure if such changes are necessary to facilitate the successful syndication of the facilities.

Proceeds from the DIP will be used to repay pre-petition bank debt and for working capital and other general corporate purposes, and proceeds from the exit facility will be used to repay the DIP, fund certain of the cash distributions under the Chapter 11 plan and for general corporate purposes.

Remy is an Anderson, Ind.-based manufacturer, remanufacturer and distributor of Delco Remy brand heavy-duty starters and alternators and Remy brand starters and alternators, locomotive products and hybrid power technology.

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