Erickson interim DIP financing approved; final hearing set for Dec. 1

By Caroline Salls

Pittsburgh, Nov. 10 – Erickson Inc. received court approval to access its debtor-in-possession financing on an interim basis, according to an order filed Thursday with the U.S. Bankruptcy Court for the Northern District of Texas.

A final hearing is scheduled for Dec. 1.

As previously reported, the company’s DIP financing will consist of a $116 million gradual roll-up of an existing revolving credit facility and a $66.67 million term loan.

The interim financing includes $49 million of the term facility and the full $116 million of the revolver.

The DIP loans will mature in six months.

Interest on the revolver will accrue at a rate of Libor plus 750 basis points. Interest on the term loan will accrue at 12%.

Wilmington Savings Fund Society, FSB is the administrative and collateral agent for the term loan.

Erickson, an aircraft manufacturer based in Portland, Ore, filed bankruptcy on Nov. 8. The Chapter 11 case number is 16-34393.

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