GT Advanced Technologies secures $100 million DIP financing commitment

By Caroline Salls

Pittsburgh, March 3 – GT Advanced Technologies, Inc. entered into a commitment letter under which TPG Specialty Lending, Inc. and affiliate TAO Finance 2, LLC will provide $100 million in senior secured super-priority debtor-in-possession financing, according to a Monday filing with the U.S. Bankruptcy Court for the District of New Hampshire.

The terms of the TPG commitment were redacted in Monday’s filing.

GT Advanced is seeking court approval to pay the TPG entities a $2 million work fee, a fee of 4% of the total committed amount, minus the amount of the work fee, payable if the company closes on any alternative debt or equity financing and up to $600,000 of TPG’s expenses.

According to an 8-K filed Tuesday with the Securities and Exchange Commission, the company also received a $90 million commitment letter and term sheet from restricted parties, which hold a portion of GT Advanced’s 3% convertible senior notes due 2017 and/or 3% convertible senior notes due 2020, but did not execute those DIP facility documents.

The noteholder facility would have matured on the earlier of one year from closing or the effective date of the company’s plan of reorganization, and interest would have been 10% payable monthly in cash and 4% payable in kind.

The noteholder facility included a 97% original issue discount and a 3% put option premium. The noteholder financing also would have included the issuance of warrants by GT Advanced to allow the lenders to purchase 3.25% of the company’s stock.

Merrimack, N.H.-based GT Advanced Technologies is a provider of equipment and services that support the growth of the solar and LED industries. The company filed for bankruptcy on Oct. 6 under Chapter 11 case number 14-11916.

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