GT Advanced begins solicitation for noteholder participation in loans

By Caroline Salls

Pittsburgh, April 6 – GT Advanced Technologies Inc. launched a process to solicit participation in a proposed debtor-in-possession term loan facility by eligible holders of its previously issued convertible notes, according to a company news release.

GT Advanced said the solicitation process is being conducted in connection with a commitment letter between the company and some of the noteholders. GT was authorized to begin the solicitation process under an April 2 order entered by the U.S. Bankruptcy Court for the District of New Hampshire.

The company said it expects the DIP facility to provide for loans in an initial principal amount of $95 million. The facility will also provide for a letter-of-credit facility for the issuance of a maximum of $15 million of letters of credit.

The opportunity to participate in the facility is limited to those holders of the company’s convertible notes as of March 13 that are qualified institutional buyers, institutional accredited investors or an entity in which all of the equity investors are institutional accredited investors.

The opportunity to participate expires at 5 p.m. ET on April 23.

GT said it expects to use the proceeds from the DIP facility to fund working capital requirements, pay costs, fees and expenses incurred in connection with the facility and pay other costs and expenses related to the administration of the Chapter 11 cases of the company and some of its subsidiaries.

According to an 8-K filed with the Securities and Exchange Commission, the DIP loans will be issued at a purchase price of 97%, and interest on the facility will accrue at a rate of 9˝% payable monthly in cash and 3% payable in kind.

In addition, the company will issue warrants on the effective date of its Chapter 11 plan that will allow the lenders to acquire 1˝% of the fully diluted stock of reorganized GT Advanced.

The DIP facility will mature on the earliest of the 12-month anniversary of the closing date, the effective date of a Chapter 11 plan of reorganization and the acceleration of the DIP loans.

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, 2014 under Chapter 11 case number 14-11916.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.