Techniplas obtains final court approval to access financing package

By Caroline Salls

Pittsburgh, June 12 – Techniplas, LLC obtained final court approval to access debtor-in-possession financing, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company negotiated the terms of two DIP financing facilities, consisting of a $30 million DIP ABL facility, which includes up to $23.5 million of new-money financing, and a $106.8 million DIP term facility, which includes up to $25 million of new-money financing.

Wilmington Trust is the agent for the term facility, and Bank of America, NA is the ABL facility agent.

The term facility will mature on the earliest of June 19, closing of a sale of substantially all the company’s assets, acceleration of the loans and 30 days after the bankruptcy filing date if a final order has not been entered.

The ABL facility will mature on the earliest of June 19, the date of termination of the commitments and upon acceleration of the facility.

Interest on the term facility will accrue at the Base rate plus 950 basis points or Eurodollar plus 1,050 bps, while interest on the ABL facility will accrue at the Base rate plus 375 bps or Libor plus 475 bps.

Techniplas is a Nashotah, Wis.-based plastics manufacturer. The company filed bankruptcy on April 6 under Chapter 11 case number 20-11049.

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