| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers I > Headlines for iMedia Brands, Inc. > News item |
iMedia Brands gets interim approval of $34.95 million DIP facility
By Sarah Lizee
Olympia, Wash., July 6 – iMedia Brands, Inc. gained interim approval of a $34.95 million debtor-in-possession facility, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
The facility consists of a $15 million term loan and a $19.95 million rollup of prepetition revolving loans, as previously reported.
Interest on the DIP facility is SOFR plus 1,000 basis points. Default interest would be an additional 200 bps.
Siena Lending Group LLC is the DIP agent.
Proposed asset purchaser RNN-TV Licensing Co. LLC is a lender on the DIP facility. Siena Lending, Crystal Financial SPV LLC, Crystal Financial LLC (doing business as SLR Credit Solutions) and North Mill Capital (doing business as SLR Business Credit) are the other DIP lenders.
A final hearing on the DIP financing is scheduled for July 24.
Purchase agreement
The proposed purchase agreement, which is subject to higher or otherwise better offers, provides for the sale of substantially all the debtors assets, the repayment of prepetition revolver debt, the assumption of trade liabilities, and jobs for about 700 employees, iMedia said.
The purchase price consists of $27.45 million in cash, plus interest and fees; a minimum cash shortfall; a credit of $7.5 million plus interest, fees and expenses owed to the buyer in its capacity as a lender under the DIP facility; and the assumed liabilities.
iMedia noted that the transaction will also provide the debtors with a series of related forbearances and agreements with respect to their non-debtor German subsidiaries that will avoid the need for a near-term insolvency filing by those entities.
iMedia Brands is an interactive media company based in Eden Prairie, Minn. The Chapter 11 case number is 23-10852.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.