GT Advanced exit commitment premium and expenses payments approved

By Caroline Salls

Pittsburgh, Dec. 7 – GT Advanced Technologies Inc. obtained court approval to pay a 5% put option premium and expenses related to a commitment for $80 million in exit financing, according to an order filed Friday with the U.S. Bankruptcy Court for the District of New Hampshire.

As previously reported, GT said the exit financing commitment includes a term sheet for a Chapter 11 plan that embodies a global settlement of numerous confirmation issues, including issues related to intercompany claims, substantive consolidation and inter-creditor disputes over the allocation of equity in the reorganized debtors, and has the support of creditors holding substantial claims throughout the company’s capital structure.

The exit financing support parties include some of the company’s existing debtor-in-possession lenders, as well as holders of large pre-bankruptcy claims against GTAT Corp. and its GT Advanced Technologies Ltd. subsidiary.

The exit facility commitment letter requires the company to file a plan and related disclosure statement no later than Dec. 21.

GT said the proposed financing consists of $60 million in principal amount of senior secured notes and $20 million in preferred stock.

The notes will accrue interest, at the GT debtors’ option, at a rate of 9% paid in cash or 11% paid in kind. The notes will mature in five years.

GT said the preferred stock will represent 86.8% ownership of the reorganized common stock on an as-converted basis, subject to dilution by a management incentive plan and DIP warrants.

The preferred stock will mature in 10 years.

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.

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