Red River Waste seeks $2.25 million of alternative DIP financing

By Sarah Lizee

Olympia, Wash., Jan. 24 – Red River Waste Solutions, LP is seeking court approval to enter into $2.25 million of alternative debtor-in-possession financing from Euclid Investments Funding I LLC, according to a motion filed Friday with the U.S. Bankruptcy Court for the Northern District of Texas.

The facility would carry a base rate of no less than 4% plus 800 basis points per year.

There would be an origination fee of $42,000, an exit fee of $28,000 and closing costs of $10,000.

As previously reported, the company had first received access to a $500,000 senior secured DIP facility from Weldon Smith. This facility has been fully funded as of Friday.

The company later sought approval to enter into a $2.8 million DIP term loan facility from SummitBridge National Investments VIII LLC. The facility was to bear interest at a minimum rate of 13½% computed on an actual basis, payable monthly in arrears. The financing from Euclid would replace the SummitBridge financing.

The Dripping Springs, Tex.-based waste management company filed bankruptcy on Oct. 14 under Chapter 11 case number 21-42423.

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