Keystone plans $60 million DIP facility; $55 million via Congress at Prime + 100 bps

By Jeff Pines

Washington, March 1 - Keystone Consolidated Industries, Inc. plans to obtain a $60 million debtor-in-possession financing facility including $55 million of borrowing through Congress Financial Corp. at prime plus 100 basis points.

The financing also includes $5 million through EWP Financial LLC. EWP is a wholly-owned subsidiary of Contran Corp., which controls a 50% stake in Keystone.

The Congress facility will have a $375,000 facility fee. Interest on the EWP facility is at Prime plus 300 basis points.

On an interim basis, Keystone wants to borrow $14.56 million. The company broke it down as $10.56 million from Congress and the balance through EWP.

The request was included in a Feb. 26 emergency motion with U.S. Bankruptcy Court for the Eastern District of Wisconsin for interim and final approval for its $60 million debtor-in-possession financing.

Keystone, a Dallas integrated wire manufacturer, hopes to schedule the final hearing on the facilities by March 15.

Both facilities will mature on earliest of a number of options including the effective date of any confirmed reorganization plan.

The Chapter 11 case number is 04-22421. Keystone filed for Chapter 11 on Feb. 26.

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