Winn-Dixie's final hearing on DIP facility extended

By Ellen Chang

Houston, March 15 - Winn-Dixie Stores, Inc. will now have the hearing to give final approval for its debtor-in-possession financing facility on March 18 instead of March 15, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The extension was agreed to by the lender and the official committee of unsecured creditors.

The company has already received interim approval allowing it to access $600 million of the $800 million total amount.

The DIP replaces the Jacksonville, Fla., supermarket operator's pre-bankruptcy $600 million credit line and will be used to supplement its cash flow during its Chapter 11 reorganization.

The DIP facility is from Wachovia Bank, NA.

Availability on the new facility will be set by a borrowing base. Of the total, $100 million initially is leasehold availability, with the amount to be based on leasehold property values once appraisals have been carried out.

Interest on the facility is Libor plus 175 basis points or Libor plus 375 basis points for leasehold availability and Libor plus 700 basis points for supplemental junior availability.

The facility's unused fee is 37.5 basis points.

The subfacility letter-of-credit fee is 1%. The standby letter-of-credit fee is 1¾%.

The closing fee is 1% of non-leasehold availability plus 2.5% of leasehold availability.

The DIP facility runs for two years unless Winn-Dixie exits Chapter 11 earlier.

Winn-Dixie filed for Chapter 11 on Feb. 21. Its case number is 05-11063.

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