Sea Launch eyes approval of up to $25 million of DIP financing

By Caroline Salls

Pittsburgh, Nov. 9 - Sea Launch Co., LLC requested court approval of up to $25 million in debtor-in-possession financing from Space Launch Services, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it expects to receive the entire $25 million of financing, although only the first $12.5 million has been committed at this time. The second $12.5 million is subject to further negotiation with the DIP lender.

Sea Launch is seeking interim access to $5 million of the financing.

According to the release, the financing is needed to satisfy working capital and operational needs, to maintain its relationships with vendors, suppliers and customers and to continue to fund payroll and capital expenditures.

The loan will mature on the earliest of six months after the closing date, subject to an optional six-month extension, the effective date of the company's plan of reorganization, the closing of a sale of Sea Launch's assets, upon conversion or dismissal of the bankruptcy case and 45 days after filing of the motion if a final order has not been entered.

Interest will be Libor plus 300 basis points, and would be Libor plus 400 bps during the optional extension period.

A hearing is scheduled for Nov. 10.

Sea Launch, a Long Beach, Calif., heavy-lift satellite commercial launch service provider, filed for bankruptcy on June 22. Its Chapter 11 case number is 09-12153.

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