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Tuesday Morning gets final approval of $12.5 million DIP revolver
By Sarah Lizee
Olympia, Wash., April 6 – Tuesday Morning, Inc. received final approval of a $12.5 million debtor-in-possession asset-based revolving credit facility via prepetition lender 1903P Loan Agent, LLC, according to an order filed Thursday with the U.S. Bankruptcy Court for the Northern District of Texas.
As previously reported, the company pivoted to this facility instead of the $51.5 million DIP facility with Invictus Global Management, LLC that it had previously sought, after Invictus failed to deliver a stalking horse bid that it had guaranteed earlier.
Tuesday Morning said that discussions with Invictus had “broken down beyond repair.”
Interest on the DIP revolver is SOFR plus 1,100 basis points, subject to a SOFR floor of 2%.
There are no closing fees, monitoring fees, agency fees or prepayment fees. There is a $200,000 expense reimbursement.
The new DIP lender is an affiliate of Gordon Brothers Group and is also the company’s first-in, last-out B documentation agent.
Tuesday Morning said the new DIP facility, combined with cash on hand, will allow the debtors to cash collateralize their prepetition letter-of-credit obligations, pay off all other amounts owed under the prepetition ABL credit agreement, and then continue operating their businesses and pursuing a sale and reorganization process.
The company also received final court approval to use the ABL lenders’ cash collateral.
Tuesday Morning is a discount off-price retailer based in Dallas. The company began its second Chapter 11 bankruptcy case on Feb. 14 under case number 23-90001. The previous case started on May 27, 2020 under case number 20-31476. The company exited that round of bankruptcy on Dec. 31, 2020.
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