Anchor Glass Container to receive $20 million term loan, $100 million DIP facility

By Sara Rosenberg

New York, March 20 - Anchor Glass Container Corp. is expected to receive a $20 million term loan from Ableco Finance LLC as part of its reorganization agreement with Cerberus Capital Management LP, of which Ableco is an affiliate. The investors will also provide a $100 million debtor-in-possession credit facility upon approval by the U.S. Bankruptcy Court.

The tranche B term loan is due on March 31, 2005 and has an interest rate of 14% per annum, according to a filing with the Securities and Exchange Commission. There will be a closing fee of 2% of the loan commitment amount, payable on the closing date. Security for the term loan is a second priority lien on all of the company's property, as well as on its subsidiaries' property.

Proceeds will be used towards reorganization and general corporate purposes.

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