GSE interim DIP loan used to repay $18.1 million priming facility

By Caroline Salls

Pittsburgh, May 8 - GSE Environmental, Inc. used $35 million of its debtor-in-possession financing to repay $18.1 million under its pre-bankruptcy priming facility, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The company said the priming facility was terminated.

After the repayment and deduction of fees and expenses in connection with entering into the DIP facility, GSE said it received $1.5 million of net cash proceeds.

As previously reported, the $35 million in interim financing is part of a $45 million DIP facility.

The financing was provided by funds affiliated with Littlejohn & Co., LLC, Tennenbaum Capital, Partners, LLC and Strategic Value Partners, LLC. Cantor Fitzgerald Securities is the DIP loan agent.

The DIP facility will mature on the earlier of six months from the bankruptcy filing date and the effective date of the company's plan of reorganization.

Interest will be Libor plus 950 basis points with a 1.5% Libor floor.

GSE, a Houston-based plastics company, filed bankruptcy on May 4 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 14-11126.

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