Global Aviation granted access to $15 million of $45 million DIP loan

By Caroline Salls

Pittsburgh, Feb. 29 - Global Aviation Holdings Inc. will have interim access to a $15 million initial tranche of its debtor-in-possession financing, according to a news release.

Two subsequent $15 million tranches will be made available when Global Aviation achieves specified milestones, including labor negotiations and a fleet restructuring, the company said.

The interim financing will allow Global Aviation to meet its working capital needs.

As previously reported, holders of the company's first lien notes are providing the DIP facility in exchange for additional liens on some of the company's assets.

The interim order also allows Global Aviation to continue to use cash collateral.

"The court's interim approval of our DIP financing is another step toward positioning Global to execute on its goals of restructuring fleet and labor costs and aligning capital structure with the size of the company," chairman and chief executive officer Rob Binns said in the release.

Cantor Fitzgerald Securities is the DIP agent.

Lenders include IN-FP2 LLC, Guggenheim Investment Management, LLC, Beach Point Capital Management LP, and Chatham Credit Management III, LLC, the filing said.

The facility will mature on the earliest of repayment in full in cash of all loans and obligations, six months from the closing date, subject to a two-month extension, and the date of any termination or acceleration of the loans.

Interest will be either the alternate Base rate plus 900 basis points with a 3% floor or Libor plus 1,000 bps with a 2% floor.

Global Aviation is a Peachtree City, Ga.-based provider of charter air transportation for the U.S. military and of commercial global passenger and cargo air transportation services. The company filed for bankruptcy on Feb. 5 in the U.S. Bankruptcy Court for the Eastern District of New York. Its Chapter 11 case number is 12-40783.

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