Ruby Tuesday seeks approval of $18.5 million DIP term loan facility

By Sarah Lizee

Olympia, Wash., Oct. 8 – RTI Holding Co., LLC (Ruby Tuesday) is seeking court approval to access a $18.5 million debtor-in-possession term loan facility, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The debtors are seeking access to $12.6 million of the loan on an interim basis.

The facility includes a $9.6 million sub-facility to be issued only for reimbursement of any draws made under existing letters of credit, and a roll-up of term loans totaling $2 million. The new money advances that will be available total $6.9 million, of which $3 million will be available upon entry of an interim order.

Interest will be Libor plus 1,000 basis points, subject to a 1% Libor floor.

The facility will mature on the earliest of 30 days after the outside date, acceleration due to an event of default, the effective date of a confirmed plan, the closing date of any sale all of the debtors’ assets, the entry of an order granting relief from the automatic stay permitting foreclosure of any assets in excess of $250,000 and the date on which any of the cases are dismissed or converted.

Goldman Sachs Specialty Lending Group, LP is the administrative and collateral agent.

The debtors are also seeking court approval to use cash collateral.

Ruby Tuesday is a Knoxville, Tenn.-based foodservice retailer. The company filed Chapter 11 bankruptcy on Oct. 7 under case number is 20-12456.

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