AmeriMark Interactive seeks approval to amend proposed DIP financing

By Sarah Lizee

Olympia, Wash., April 21 – AmeriMark Interactive, LLC is seeking an amendment to its proposed $48 million senior secured super-priority debtor-in-possession revolving credit facility, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The debtor is seeking approval for prepetition term agent SLR Credit Solutions to acquire 100% of PNC Bank, NA’s positions under the prepetition credit agreement and the DIP credit agreement, and thus substitute for PNC as administrative agent and swingline lender under both facilities.

The company is also seeking to modify some of the terms of the DIP facility, including an increase in the amount of the revolving loans the debtors may use during the interim period to $15 million from $7.4 million, and a revised DIP budget.

The company said that through the loan acquisition it will have access to additional interim funding that will allow it to partially restart operations and rehire some employees, which will facilitate the sale of existing inventory and realize collections for sale of the existing inventory.

As previously reported, the DIP facility includes an interim roll-up, at the discretion of the DIP agent, of the debtors’ obligations under its prepetition revolver on a dollar-for-dollar basis. Upon entry of the final order, the remaining outstanding amount under the prepetition revolver will be rolled up on a cashless dollar-for-dollar basis into loans under the DIP facility.

Interest on the DIP facility is equal to the base rate plus 475 basis points.

The DIP facility is set to mature on May 30.

AmeriMark is a Cleveland-based direct marketer of women's apparel, shoes, cosmetics, fragrances, jewelry, watches, accessories and health-related merchandise. The company filed bankruptcy on April 11 under Chapter 11 case number 23-10438.

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