Edwin Watts Golf gets OK for interim access to $5 million DIP facility

By Jim Witters

Wilmington, Del., Nov. 5 - Edwin Watts Golf Shops, LLC received approval for interim access to $5 million of a $38 million debtor-in-possession financing facility during a Nov. 5 hearing in the U.S. Bankruptcy Court for the District of Delaware.

Judge Mary F. Walrath wasted no time approving what debtors attorney Domenic E. Pacitti described as "a typical DIP facility."

He said there is a "creeping rollup." About $33 million of pre-petition secured debt will be paid to PNC Bank, NA as part of the final DIP agreement.

There were no objections.

As previously reported, Edwin Watts secured a commitment for $38 million of debtor-in-possession financing.

PNC Bank is the lender agent.

Interest will accrue at the alternate base rate plus 125 basis points.

The debtors also will pay a $200,000 commitment fee.

The DIP loan will mature on the earliest of Dec. 31, the effective date of a reorganization plan, the closing of the company's sale, conversion or dismissal of the bankruptcy case and Nov. 26 if the final order has not been entered.

Walrath scheduled the final DIP hearing for 10 a.m. ET on Nov. 20.

Edwin Watts Golf, a Fort Walton Beach, Fla.-based specialty golf retailer, filed for bankruptcy on Nov. 4. The Chapter 11 case number is 13-12876.

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