Exide Technologies DIP amendment, facility extension OK’d by court

By Kali Hays

New York, Oct. 31 – Exide Technologies received approval of an amendment to its final debtor-in-possession order extending the maturity date of the credit facility to March 31 among other alterations, under a Friday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Exide received all necessary approvals on the amendment from its lenders on Oct. 10.

The company said the extension gives Exide and its noteholders additional time to complete negotiations regarding a plan of reorganization that would allow the company to emerge from Chapter 11 substantially in its current form, operating across all business segments.

Exide said it is working toward a proposal that would pay or refinance the existing DIP facility and provide additional capital to fund its reorganization.

According to an Oct. 10 8-K filed with the Securities and Exchange Commission, the amendment also sets milestones related to Exide’s restructuring efforts and modifies the requirements for an acceptable reorganization plan.

In addition, the amendment eliminates reinvestment rights on dispositions triggering mandatory prepayments, modifies limitations related to expense reimbursement, modifies a financial covenant related to minimum liquidity of the loan parties, adds financial covenants related to minimum liquidity and maximum capital expenditures and eliminates the financial covenant related to minimum 12-month trailing EBITDA.

The amendment also modifies the definitions of permitted dispositions and permitted debt and limits the availability of some baskets to amounts outstanding as of Oct. 9 and modifies agent and lender voting and consent thresholds.

Exide said the amendment further provides that, effective on Oct. 9, the commitments under the DIP revolving facility will be reduced to $200 million from $225 million. Future borrowings under the DIP revolving facility will be subject to unrestricted cash not exceeding $50 million.

The company and lenders also approved additional fees and an increase to the applicable margin under the DIP facility.

Revolving loans will bear interest at a rate of Libor plus 400 basis points for amounts outstanding as of Dec. 31 and Libor plus 450 bps thereafter.

Exide Technologies, a Milton, Ga.-based maker and recycler of lead-acid batteries, filed for bankruptcy on June 10, 2013 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 13-11482.

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