EZ Lube granted interim access to $2.5 million of DIP financing; final hearing Jan. 5

By Caroline Salls

Pittsburgh, Dec. 10 - EZ Lube, LLC was granted interim access to $2.5 million of its $62.48 million of debtor-in-possession financing from agent Goldman Sachs Specialty Lending Group, LP, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Jan. 5.

Interest on the $9 million revolving credit facility portion of the total DIP commitment will be Base rate plus 700 basis points, and interest on the term loan portion will be Base rate plus 450 bps.

The DIP facility will mature on the earliest of 180 days from the bankruptcy filing date, 45 days after entry of the interim order if a final order has not been entered, the effective date of a plan of reorganization, upon the sale of substantially all company assets or upon the dismissal or conversion of the company's Chapter 11 bankruptcy case.

The company will pay a $270,000 facility fee and a $100,000-per-year administration fee.

EZ Lube, a Santa Ana, Calif.-based quick lube operator, filed for bankruptcy on Dec. 9. Its Chapter 11 case number is 08-13256.

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