LSC Communications granted interim approval to access DIP financing

By Caroline Salls

Pittsburgh, April 16 – LSC Communications, Inc. obtained court approval to use $27.5 million of a proposed $100 million of debtor-in-possession financing on an interim basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for May 12.

The interim order also allows LSC to issue up to $45 million in letters of credit.

The DIP financing, combined with cash on hand and generated through its ongoing operations, is expected to be sufficient to support the company’s operational and restructuring needs.

Bank of America, NA is the DIP loan agent.

The facility will mature six months from the bankruptcy filing date.

Interest will accrue at the alternate Base rate plus 575 basis points or Libor plus 675 bps.

LSC is a Chicago-based provider of digital print, print-related services and office products. The company filed bankruptcy on April 13 under Chapter 11 case number 20-10950.

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