Instant Brands asks to pull another $10 million from DIP term loan

By Sarah Lizee

Olympia, Wash., July 3 – Instant Brands is seeking an amendment to its proposed $257.5 million debtor-in-possession financing package that would allow it to pull forward another $10 million of new term loan money during the interim period prior to the final DIP hearing, according to an emergency motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company gained access to $100 million of the $132.5 million new money term loan and the full amount of the ABL rollup following an interim order.

Instant Brands said that because the debtors do not yet have full access to the term loan DIP facility, they don’t have enough budgeted funds to make certain payments before July 12, when the final DIP hearing is scheduled.

The company said it will use the additional $10 million to make critical payments to key vendors and to make timely down payments for capital expenditures for its housewares business.

DIP financing terms

The DIP agent for the new-money term loan is Wilmington Trust, NA.

Interest on the new money is SOFR plus 1,000 basis points per annum.

For each interest period, the borrower will pay-in-kind, in lieu of cash payment, a portion of the interest accrued during such interest period in respect of any loans equal to 7% per annum.

There is a 5% commitment fee and a 10% backstop fee on the new money.

The rollup consists of a $105 million first-out tranche A, a $12 million last-out tranche B-1 and an $8 million last-out tranche B-3.

Bank of America, NA is the DIP agent on the rollup.

Interest on the rollup is SOFR plus 400 bps for tranche A loans, SOFR plus 500 bps for tranche B-1 loans and SOFR plus 600 bps for tranche B-3 loans.

Instant Brands is a Downers Grove, Ill.-based manufacturer of kitchen and houseware brands, such as Instant Pot, Pyrex, Corelle, CorningWare, SnapWare, Chicago Cutlery and Visions. The company filed bankruptcy on June 12 under Chapter 11 case number 23-90716.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.