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Dayton Superior granted final OK of revised $165 million DIP facility
By Caroline Salls
Pittsburgh, June 5 - Dayton Superior Corp. has received court approval of an amended version of its $165 million debtor-in-possession credit facility from General Electric Capital Corp.
According to a company news release, the amendment reduces the interest rate, gives the company more time to reach key milestones in the Chapter 11 process, reduces required EBITDA milestones and gives the holders of the company's senior subordinated notes the right to participate in a rights offering.
According to an 8-K filed with the Securities and Exchange Commission, the applicable interest rate margin for Eurodollar loans was reduced to 750 basis points from 1,200 bps, and the applicable margin for base rate loans was reduced to 650 bps from 1,100 bps.
In connection with the amendment, the senior subordinated noteholders and Dayton Superior's term loan lenders have withdrawn their objections to the DIP facility and have reached an understanding in principle with GE Capital on a plan for the company's emergence from bankruptcy.
"This amendment to our DIP credit facility and the bondholders' withdrawal of their objections are critical steps towards smoothly and quickly exiting from Chapter 11," Dayton Superior president and chief executive officer Rick Zimmerman said in the release.
"We are encouraged that the parties have resolved their material differences and look forward to efficiently finalizing our capital restructuring process."
As previously reported, $25 million of the DIP financing is available for letters of credit.
The facility will mature in one year.
Dayton Superior, a Dayton, Ohio-based provider of specialized products consumed in nonresidential concrete construction and concrete forming, filed for bankruptcy on April 19 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-11351.
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