Hilex Poly granted interim access to $94 million of DIP financing; final hearing May 27

By Caroline Salls

Pittsburgh, May 7 - Hilex Poly Co. LLC was granted interim access to $94 million of its $140 million debtor-in-possession facility from General Electric Capital Corp. and Morgan Stanley Senior Funding, Inc., according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for May 27.

The DIP facility includes a $90 million revolving facility and a $50 million term loan. The facility includes a $15 million letter-of-credit subfacility.

The DIP commitment will terminate on the earliest of one year from the bankruptcy filing date, 45 days from the petition date if the final order has not been entered, upon the confirmation of a plan of reorganization acceptable to the lenders and upon the sale of substantially all of the company's assets.

Proceeds will be used to repay pre-bankruptcy debt and related fees and for working capital and general corporate purposes.

Interest on the revolver will be Libor plus 350 basis points, with a 290 bps floor. Interest on the term loan will be Libor plus 800 bps, with a 400 bps floor.

Hilex, a Hartsville, S.C., plastic bag company, filed for bankruptcy on May 6. Its Chapter 11 case number is 08-10890.

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