Pace Industries interim DIP financing approved; plan hearing May 21

By Caroline Salls

Pittsburgh, April 15 – Pace Industries, LLC obtained court approval to access $21 million of a $175 million in debtor-in-possession financing from its senior secured noteholders and revolving credit lenders on an interim basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for May 12.

As previously reported, the financing will help ensure that the company can meet its commitments during the restructuring process.

The DIP facilities consist of a $125 million asset-based revolving credit facility and a $50 million multi-draw term loan facility.

Interest will accrue on the revolver at a rate of Libor plus 400 basis points. Interest on the term loan facility will accrue at Libor plus 825 bps.

In addition, the court scheduled a combined hearing on confirmation of the company’s plan of reorganization and approval of the related disclosure statement for May 21.

Pace is a Fayetteville, Ark.-based full-service aluminum, zinc and magnesium die casting company. The company filed bankruptcy on April 12 under Chapter 11 case number 20-10927.

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