TBS International: DIP loan approved; plan hearing set for March 16

By Lisa Kerner

Charlotte, N.C., Feb. 28 - TBS International plc received the final court order to access its $42.8 million of debtor-in-possession facilities, according to Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the DIP facility is comprised of a $41.3 million six-month term loan facility provided by Bank of America, DVB Bank, Toronto Dominion Bank and a number of TBS' other pre-filing secured lenders, and a separate $1.5 million revolving credit facility provided by Credit Suisse.

Interest on the term loan will be either one-month Libor plus 550 basis points with a 1.5% Libor floor or Base rate plus 450 bps.

Interest on the Credit Suisse revolving facility A will be Libor plus 400 bps, and interest on the Credit Suisse revolving facility B will be either Libor plus 250 bps or Libor plus 300 bps, depending on the loan-to-value ratio.

The revolvers will mature on the earliest of the day the company's plan takes effect, with a June 30 outside effective date, the date of the sale of the last remaining Credit Suisse vessel or upon any acceleration of the DIP loan.

TBS was seeking interim access to $17 million of the term loan and $500,000 from the revolvers.

On March 16, the court will hold a combined hearing on approval of TBS' disclosure statement and confirmation of its pre-packaged plan of reorganization.

TBS, a Dublin, Ireland-based transportation services company, filed for bankruptcy on Feb. 6 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 12-22224.

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