AmeriFirst Financial seeks approval of $5 million DIP financing

By Sarah Lizee

Olympia, Wash., Aug. 29 – AmeriFirst Financial, Inc. is seeking approval of a $5 million in debtor-in-possession facility with prepetition lenders RCP Credit Opportunities Fund Loan SPV (Fund III), LP and RCP Customized Credit Fund (Fund IV-A), LP, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The senior secured super-priority term loan will be used for general liquidity purposes, including payment of administrative expenses and estate professional fees.

The DIP facility will bear interest at SOFR plus 200 basis points, payable at maturity. The default rate would be SOFR plus 450 bps, payable in cash monthly in arrears.

Fees include 50 bps on the total facility size and 50 bps on unused commitment amounts both accrued and payable at maturity.

The maturity date is Nov. 30.

The company is seeking interim access to $2.78 million of the facility.

“Without the proposed DIP loans, the debtors would suffer immediate and irreparable harm and would be forced to terminate operations, layoff all employees, and convert these cases to Chapter 7,” the company said in the motion.

The company said that as of the petition date, the total principal amount outstanding under its prepetition credit agreement with the RCP lenders is at least $15.8 million, plus accrued interest and other costs.

AmeriFirst Financial is a mortgage lender based in Mesa, Ariz. The company filed bankruptcy on Aug. 24 under Chapter 11 case number 23-11240.

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