Exide Technologies wins interim access to $395 million DIP financing

By Jim Witters

Wilmington, Del., June 11 - Exide Technologies received approval for interim access to $395 million of debtor-in-possession financing, according to documents filed June 11 with the U.S. Bankruptcy Court for the District of Delaware.

The interim DIP includes $225 million under a revolving loan and $170 million under a term loan.

As previously reported, Exide negotiated a $500 million debtor-in-possession financing facility to be provided by a group of financial institutions and investors.

The facility includes a $225 million asset-based revolving credit facility and a $275 million second-out superpriority, multiple-draw secured term loan facility.

JPMorgan Chase Bank is the administrative and collateral agent, and J.P. Morgan Securities LLC is the lead arranger.

The DIP credit agreement will mature on the earliest of 16 months after the conditions to initial funding are satisfied, the acceleration of the advances and termination of the commitments, 45 days after entry of the interim order if the final order has not been entered and the effective date of a plan of reorganization.

Interest on the revolver will be Base rate plus 225 basis points for Base rate loans and Libor plus 325 bps for Libor loans and swingline loans. Interest on the term loan will be 9%.

The company said this financing will enhance its global liquidity position with roughly $300 million in new capital to allow it to proceed with its restructuring goals.

A hearing for final approval of the DIP financing is scheduled for 10 a.m. ET on July 11.

Exide Technologies, a Milton, Ga.-based maker and recycler of lead-acid batteries, filed for bankruptcy on June 10. The Chapter 11 case number is 13-11482.

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