UniTek allowed interim access to DIP facility; plan agreement approved

By Kali Hays

New York, Nov. 5 – UniTek Global Services, Inc. obtained interim court authorization to access up to $29.2 million of term advances from a proposed $43 million of term advances included in a debtor-in-possession facility, according to a Nov. 5 order from the U.S. Bankruptcy Court for the District of Delaware.

The interim order also allows the company to access $10 million in revolving commitments and a $3.7 million letter-of-credit roll-up.

As previously reported, Wilmington Trust is the DIP loan agent.

Interest will be either Base rate plus 750 basis points, with 100 bps payable in kind, or Libor plus 850 bps, also with 100 bps payable in kind. The Libor rate floor will be 1%.

A final hearing on the DIP financing is set for Dec. 3.

Under a separate Tuesday order, UniTek also received approval to enter into a restructuring and recapitalization plan support agreement with its lenders, Apollo Investment Corp. and DirectTV, LLC.

UniTek, a Blue Bell, Pa.-based provider of engineering, construction management and installation fulfillment services to the telecommunications, broadband cable and satellite industries, filed for bankruptcy Nov. 3. The Chapter 11 case number is 14-12471.

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