Rockport gets interim approval of $74.8 million DIP facility package

By Sarah Lizee

Olympia, Wash., June 23 – Rockport Co., LLC received interim approval of a debtor-in-possession financing package, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the financing includes a $32 million DIP asset-based facility, which will roll up the company’s prepetition ABL facility on a creeping rolling basis, and a DIP term loan facility that will roll up $34 million of the debtors’ prepetition first-lien term loan claims and provide $8.8 million of new money.

Following the interim order, the company can access the entire DIP term loan.

The DIP facilities are set to mature on Sept. 30.

Wells Fargo Bank, NA is the administrative agent on the DIP ABL facility, which will bear interest at the contract rate or index rate plus 300 basis points.

The DIP term loan facility is with Callodine Commercial Finance SPV, LLC Gordon Brothers Brands, LLC as lenders. Interest is SOFR plus 1,015 bps.

Rockport, a West Newton, Mass.-based footwear company, filed its first bankruptcy case on May 14, 2018, and emerged from those proceedings on Dec. 31, 2018. The company filed bankruptcy a second time on June 14 under Chapter 11 case number 23-10774.

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