OFS International gets approval to access portion of DIP financing

By Sarah Lizee

Olympia, Wash., June 2 – OFS International, LLC received interim court approval to access a portion of a $16.5 million debtor-in-possession financing, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the financing is being provided by Sandton Capital Solutions Master Fund V, LP. The financing consists of a $12.5 million DIP revolving ABL facility and an up to $4 million DIP term loan.

Of the $4 million in term loans, $800,000 is available in a first tranche following entry of the interim order, $700,000 will be available as a second tranche upon entry of a final order, and an additional $2.5 million may be made available as a discretionary third tranche for working capital purchases acceptable to Sandton in its sole discretion, and depending upon borrowing base availability.

The DIP credit facilities provide for a creeping roll up of Sandton’s pre-petition secured debt.

The maturity date is Dec. 31. Interest is 11%, with 5% paid in kind and 6% in cash.

The company also received interim court approval to use the cash collateral of Sandton.

The Houston-based company provides oil company tubular goods and services. The company filed bankruptcy on May 31 under Chapter 11 case number 21-31784.

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