Global Power Equipment gets interim access to $60 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., Nov. 30 - Global Power Equipment Group Inc. was granted interim access to $60 million of a commitment from Morgan Stanley Senior Funding, Inc. for up to $85 million in debtor-in-possession financing, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

A final hearing on the DIP funding is scheduled for Jan. 9.

As previously reported, proceeds will be used to refinance Global Power's existing senior secured revolving debt and term loan, to facilitate bonding and performance obligations under letters of credit and to provide further liquidity to Global Power in support of its ordinary course business operations.

According to the order, the DIP facility will include a $20 million senior secured super-priority term loan and a $65 million senior secured super-priority synthetic letter-of-credit facility.

Maturity will be the earliest of 12 months, 45 days after entry of the interim order if a final order has not been entered and Global Power's emergence from bankruptcy.

Interest on the term loan will be either Base rate plus 550 basis points or Eurodollar rate plus 625 bps.

The company will pay a monthly synthetic letter-of-credit fee at a rate equal to 625 bps times the difference between the synthetic letter-of-credit commitments and the total amount drawn on the letters of credit.

At closing, Global Power will pay fees equal to 3% of the total commitment.

In addition, the company will pay bank issuance fees of 50 bps times the amount of any letter of credit issued under the facility.

The Tulsa, Okla., maker of gas turbine power plants and power-related equipment for industrial operations filed for bankruptcy on Sept. 28. The Chapter 11 case number is 06-11045.

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