Transport Industries gets interim access to $45 million of DIP financing; final hearing Nov. 24

By Caroline Salls

Pittsburgh, Oct. 23 - Transport Industries LP has been granted interim access to $45 million of its $73.6 million of debtor-in-possession financing from UBS AG, Stamford Branch, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Nov. 24.

The DIP loan is structured as a delayed-draw term loan and will provide for up to $60 million in letters of credit.

Transport said the DIP facility proceeds and cash on hand will give it much needed liquidity to fund its operating, working capital and capital expenditure needs.

The facility will mature on the earliest of March 31, 2009, upon the sale of substantially all of the company's assets, the effective date of a plan of reorganization and the date of conversion or dismissal of the bankruptcy case.

Interest will be Base rate plus 600 basis points.

The company will pay an upfront fee of 3% of the total commitment, a 3.25% term loan letter-of-credit backstop fee, an annual $100,000 administrative agency fee and an annual $250,000 collateral agency fee.

Transport Industries, a Dallas-based third-party provider of transportation services, filed for bankruptcy on Oct. 20. Its Chapter 11 case number is 08-12430.

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