Home Products granted final approval of $60 million DIP facility

By Jennifer Lanning Drey

Portland, Ore., Jan. 11 - Home Products International, Inc. obtained final court approval of its $60 million in debtor-in-possession financing from Bank of America, NA, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the DIP facility is comprised of a $60 million revolving credit facility, including an $8 million letter-of-credit subfacility.

The company will also have $11.5 million of incremental borrowing availability in excess of its pre-bankruptcy credit agreement, subject to a $1.5 million minimum availability at all times.

Cash collateral proceeds must be used to repay the pre-bankruptcy credit facility.

The DIP facility will mature on June 30, 2007.

Interest will be Libor plus 175 basis points.

The company will pay 175 bps letter-of-credit and letter-of-credit guaranty fees.

Home Products, a Chicago housewares company, filed for bankruptcy on Nov. 20. Its Chapter 11 case number is 06-11457.

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