Highland Capital seeks court approval of $50 million exit financing

By Sarah Lizee

Olympia, Wash., April 21 – Highland Capital Management, LP is seeking court approval of $50 million of exit financing, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas.

The facility would mature in three years. Interest would be Libor plus 700 basis points for the first two years, then Libor plus 800 bps in the third year. There would be a 1.5% Libor floor.

The facility includes a $250,000 expense deposit and a 1% upfront fee.

Highland said it will identify an unaffiliated third-party lender on or before May 5.

The proceeds would be used to repay subsidiary Trussway Industries’ term loan obligations in the approximate amount of $31.34 million, with the remainder of the credit facility to be used as working capital and to satisfy the obligations under the Chapter 11 plan, including the establishment of an administrative claims reserve and payment of allowed claims.

HCMLP is a Securities and Exchange Commission-registered investment adviser on Dallas-based Highland Capital Management’s global alternative investment platform. The company filed bankruptcy on Oct. 16, 2019 in the U.S. Bankruptcy Court for the District of Delaware. The case was later transferred to the Texas court under Chapter 11 case number 19-34054.

© 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.