Lumileds secures final approval to access $275 million DIP facility

By Sarah Lizee

Olympia, Wash., Oct. 13 – Lumileds Holding BV received final approval to access $275 million in debtor-in-possession financing, according to a final order filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the DIP financing is part of a pre-packaged Chapter 11 plan and restructuring support agreement with certain lenders of the company’s prepetition first-lien debt facility, and sponsors AP Bright Holdings (Lux) Sarl, Metaaldraadlampenfabriek Volt BV and Alnitak (MEP) BV.

The DIP facility’s amount consists of $175 million in new money, of which about $133 million was funded following an interim court order, and about $42 million will be funded a week after the RSA’s effective date when the DIP solicitation period closes; and a delayed-draw term loan of up to $100 million to be funded if the debtors fail to get continuation of a receivables factoring facility with Credit Agricole Leasing & Factoring SA.

Along with first-lien loan claims, the DIP loans will be converted into five-year exit first-lien term loans on the plan effective date.

The facility will be fully backstopped by the consenting prepetition first-lien lenders.

Prepetition first-lien facility agent Deutsche Bank Securities, Inc. is also the agent for the DIP facility.

Interest is SOFR plus 800 basis points, subject to a 1% SOFR floor.

Lumileds also received final court approval to access the cash collateral of its prepetition first-lien lenders.

Under the pre-packaged plan, holders of first-lien loan claims will receive their pro rata share of 100% of the equity in the reorganized debtors and the exit first-lien takeback term loans.

Lumileds, based in San Jose, Calif., develops, manufactures and distributes light-emitting diode (LED) devices, light bulbs and related products for automotive, general and specialty lighting. The company filed bankruptcy on Aug. 29 under Chapter 11 case number 22-11155.

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