Kaiser wins court approval for DIP and exit facilities

New York, Feb. 11 - Kaiser Aluminum Corp. said it received court approval for a new $200 million debtor-in-possession credit facility and a $250 million exit facility.

Kaiser said it closed on the new DIP facility Friday.

J.P. Morgan Securities Inc. is lead arranger, sole bookrunner and syndication agent for the new facility. JPMorgan Chase Bank is administrative agent. CIT Group/Business Credit, Inc. is co-arranger.

The new DIP replaces an existing DIP of the same size that expires on Feb. 13.

It will run for a year, unless the reorganization is completed sooner, and carry interest at Libor plus 225 basis points. There is an unused fee of 20 to 35 basis points.

The exit facility consists of a $200 million five-year revolving credit facility and a $50 million six-year term loan.

The revolver will have similar terms to the DIP but will mature after five years, not require an additional commitment fee and will be available for general corporate purposes.

The term loan will pay interest at Libor plus 550 basis points and mature after six years. It will be secured by a junior lien.

Kaiser, a Houston aluminum company, filed for bankruptcy on Feb. 12, 2002. Its Chapter 11 case number is 02-10429.

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