Gibson Brands secures OK to access $135 million in DIP financing

By Caroline Salls

Pittsburgh, May 31 – Gibson Brands Inc. obtained approval from the U.S. Bankruptcy Court for the District of Delaware to access the full amount of its $135 million in debtor-in-possession financing and use of cash collateral, according to a company news release.

“This is the next milestone for Gibson in completing our pre-negotiated Chapter 11,” chairman and chief executive officer Henry Juszkiewicz said in the release.

“Our financing has the support of all of our stakeholders. Today’s decision assures that it remains business as usual at Gibson.”

As previously reported, funding from the DIP facility along with cash generated from operations will provide the company with the liquidity necessary to maintain its operations during its reorganization.

The DIP facility will mature nine months from the bankruptcy filing date.

Interest will accrue at a rate of Libor plus 900 basis points with a 2% Libor floor.

Gibson Brands is a Nashville-based maker of musical instruments and consumer and professional audio. The company filed bankruptcy on May 1 under Chapter 11 case number 18-11025.

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