Westinghouse granted interim access to $350 million in DIP financing

By Caroline Salls

Pittsburgh, March 31 – Westinghouse Electric Co., LLC received court approval to use $350 million of a proposed $800 million of debtor-in-possession financing on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for April 26.

The company said the DIP financing will fund its core businesses of supporting operating plants, nuclear fuel and components manufacturing and engineering as well as decommissioning, decontamination, remediation and waste management as it works to reorganize around these strong business units.

Existing letters of credit have been cash collateralized in full and will remain in place. The financing will also allow for new letters of credit to be issued.

Apollo Investment Corp., AP WEC Debt Holdings LLC, and Midcap Financial Trust are the DIP financing commitment parties. The package also includes a $225 million letter-of-credit facility from Citigroup Global Markets Inc., of which $100 million will be available on an interim basis.

Interest on Base rate loans will accrue at the Base rate plus 525 basis points, and interest on Libor loans will accrue at Libor plus 625 bps.

The facility will mature in one year, subject to a borrower’s option to extend the maturity date by 12 months.

Westinghouse, a Cranberry Township, Pa.-based nuclear products and services company and a subsidiary of Toshiba, filed bankruptcy on March 29. The Chapter 11 case number is 17-10751.

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