Exide gets approval of $40 million DIP facility, cash collateral use

By Sarah Lizee

Olympia, Wash., June 22 – Exide Technologies received court approval to obtain $40 million in debtor-in-possession financing from a group of lenders, including some of its existing noteholders, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The company also received approval to use cash collateral, the order said.

As previously reported, Exide said the DIP financing will provide sufficient liquidity to support ongoing operations in North America for the duration of its sale process and restructuring.

Blue Torch Finance LLC is the DIP agent.

The DIP financing consists of a $25 million first-out loan and a $15 million last-out loan.

The facility will mature on the earliest of six months from closing, the conversion or dismissal of Exide’s Chapter 11 cases, appointment of a Chapter 11 trustee or examiner, the closing of a sale transaction, failure to satisfy sale milestones, the closing of any credit bid transaction involving the sale of any Americas assets, an event of default and the occurrence of other maturity date triggers.

Interest will accrue at a cash interest rate of Libor plus 1,000 basis points with a 2% Libor floor. This is comprised of a blended rate of Libor plus 900 bps for the first-out loan and Libor plus 1,176 bps for the last-out loan.

Exide Technologies is a Milton, Ga.-based maker and recycler of lead-acid batteries. The company filed bankruptcy on May 19 under Chapter 11 case number 20-11157.

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