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Instant Brands seeks approval to lift DIP term loan to $162.5 million
By Sarah Lizee
Olympia, Wash., Aug. 8 – Instant Brands is seeking approval to lift its $132.5 million debtor-in-possession term loan facility to $162.5 million, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.
As previously reported, the DIP financing package included a $132.5 million new-money term loan facility and a $125 million rollup of asset-based lending facility debt.
The company has drawn the full $132.5 million and said it needs the additional funding to provide critical payment for prescription account payable balances to its vendors.
The new $30 million would add a super senior, first-out tranche under the DIP term loan facility.
As previously reported, 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.
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