Remy $225 million DIP approved, still on track to exit bankruptcy in early December

By Caroline Salls

Pittsburgh, Nov. 7 - Remy Worldwide Holdings, Inc. obtained final court approval of its $225 million debtor-in-possession facility led by Barclays Capital, according to a company news release.

"The approval of the final DIP facility is right in line with our game plan, and keeps us on track to complete our consensual restructuring and emerge from Chapter 11 in early December as planned," Remy chief executive officer John Weber said in the release.

"The DIP facility provides more than adequate resources to fund our post-petition obligations to suppliers and employees and our other operating requirements during the plan confirmation process."

As previously reported, the DIP facility includes a $120 million asset-based revolver, including up to $20 million for letters of credit, and a $105 million term loan.

Maturity will be the earlier of six months from closing or upon the effective date of a plan of reorganization.

Interest on the revolver will be Libor plus 200 basis points, and interest on the term loan will be Libor plus 450 bps.

On the revolver, after three months from the closing date, interest on the DIP facility will be determined based on excess availability.

If excess availability is greater than $85 million, interest on the revolver will be Libor plus 175 bps; if excess availability is $40 million to $85 million, interest will be Libor plus 200 bps; and if excess availability is less than $40 million, interest will be Libor plus 225 bps.

The DIP facility can be converted into exit financing on the plan effective date.

When the DIP facility is converted, the company will have the option to borrow an additional $55 million under the first-lien DIP term loan and $50 million under a second-lien term loan.

Remy, 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, filed for bankruptcy on Oct. 8 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 07-11481.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.