Crescent, Friedman's granted final approval of $75 million DIP facility

By Caroline Salls

Pittsburgh, Feb. 13 - Crescent Jewelers and parent Friedman's Inc. obtained final court approval of up to $75 million in debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The CIT Group/Business Credit, Inc. is the administrative agent.

The DIP includes a $15 million sublimit for letters of credit.

The DIP facility will mature on the earliest of 180 days from Crescent's bankruptcy filing, the effective date of a plan of reorganization and upon acceleration of the loan.

Interest will be either Prime rate plus 175 basis points or Libor plus 375 bps, at the borrowers' option.

Proceeds will be used for working capital and general corporate purposes.

Crescent and Friedman's will pay a 3.75% letter-of-credit fee and a $50,000 commitment fee.

Crescent Jewelers, an Addison, Texas, retailer, filed for bankruptcy on Jan. 28. Its Chapter 11 case number is 08-10161.

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