Exide Technologies wins OK of $65 million DIP financing increase

By Caroline Salls

Pittsburgh, July 28 – Exide Technologies received court approval of a debtor-in-possession financing amendment that will provide an additional $65 million term loan commitment, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said the additional commitment will result in roughly $60 million of net cash proceeds.

The amendment also extends the maturity date to Dec. 31 and adjusts plan-related milestones to allow enough time to complete the plan confirmation process.

Since the maturity extension requires 100% consent, the company said its unofficial senior secured noteholders committee agreed to acquire the debt of any holders of the DIP term facility that do not consent to a maturity extension.

In addition, Exide said the amendment eliminates restrictions on capital expenditures to give it flexibility to continue to invest to support ongoing operations and facilities and requires the company to maintain a minimum level of $35 million in liquidity.

According to an 8-K filed Monday with the Securities and Exchange Commission, the company’s sixth DIP loan amendment eliminates restrictions on capital expenditures, adjusts a minimum EBITDA covenant to include the period of October through November and address lower anticipated earnings through the end of 2014 and extends milestones related to the confirmation of a plan of reorganization and the plan effective date based on the maturity extension.

A seventh amendment eliminates a milestone related to the filing of the plan with the bankruptcy court.

Exide agreed to pay a 3.5% fee of the total commitment, payable in kind or as original issue discount and capitalized as additional principal. The company also agreed to pay a 0.5% amendment fee in cash.

According to the motion, the overall amendment package preserves estate value by ensuring the company can execute on its business plan during the high working capital season and maintain its liquidity position.

Exide Technologies, a Milton, Ga.-based maker and recycler of lead-acid batteries, filed for bankruptcy on June 10, 2013. Its Chapter 11 case number is 13-11482.

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