Equity Media secures $55 million DIP financing commitment

By Caroline Salls

Pittsburgh, Jan. 29 - Equity Media Holdings Corp. requested court approval of a $55 million debtor-in-possession facility, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of Arkansas.

The company said it does not have enough funding to continue to operate on an ongoing basis without the DIP financing.

The DIP loan includes a $9 million revolving credit facility and a $46 million term loan.

Silver Point Finance, LLC is the administrative agent, and the DIP facility lenders are SPCP Group, LLC and SPF CDO I, Ltd.

Equity Media is requesting interim access to $500,000 of the DIP financing.

Interest on the revolver will be Libor plus 800 basis points, and interest on the term loan will be Libor plus 1,000 bps.

The facility will mature on the earliest of 180 days from entry of the interim order, Feb. 20 if the final order has not been entered, the effective date of a plan of reorganization and upon a sale of substantially all company assets.

The company will pay a closing fee of 1% of the revolver commitment.

Equity Media, based in Little Rock, Ark., owns and operates television stations. The company filed for bankruptcy on Dec. 8, and its Chapter 11 case number is 08-17646.

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