USA Commercial Mortgage seeks court OK for $15 million DIP facility

By Caroline Salls

Pittsburgh, June 12 - USA Commercial Mortgage Co. requested court approval of a $15 million revolving credit debtor-in-possession facility from CapitalSource Finance, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the District of Nevada.

Interest will be Libor plus 300 basis points.

Maturity will be the earliest of one year, upon confirmation of a plan of reorganization, upon a sale of the business and upon acceleration because of an event of default.

The company will pay a 42 basis point collateral management fee, a 100 basis point commitment fee and a 50 basis point additional commitment fee if CapitalSource provides the company with exit financing.

Proceeds will be used to pursue necessary collection actions for non-performing construction loans, to fund administrative and operational expenses, to possibly fund shortfall loans to complete the construction projects and to originate new loans for the purpose of generating income for payment to creditors.

USA Commercial Mortgage, a privately held real estate lender based in Las Vegas, filed for bankruptcy on April 13. Its Chapter 11 case number is 06-10725.

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