Leiner $74 million DIP facility approved

By Caroline Salls

Pittsburgh, April 10 - Leiner Health Products Inc. obtained final court approval of its $74 million debtor-in-possession facility, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

UBS Securities LLC and General Electric Capital Corp. are joint lead arrangers, while UBS is bookrunner. UBS AG, Stamford branch, is administrative agent.

The DIP financing will be used to fund Leiner's ongoing working capital, general corporate and other financing needs.

The DIP loan is comprised of an $18 million term loan A facility, a $44 million term loan B facility and a $12 million revolving loan facility.

The DIP facility will mature on the earlier of July 31, full repayment, the closing of a sale of substantially all of Leiner's assets, the effective date of Leiner's plan of reorganization, conversion of the case to Chapter 7 bankruptcy or the termination of all of the commitments under the DIP.

Interest on the revolver and term loan A will be Libor plus 450 basis points. The interest rate on any borrowings under the term loan B will be Libor plus 750 bps.

Leiner is a Carson, Calif.-based manufacturer of store-brand vitamins, minerals and nutritional supplements. The company filed for bankruptcy on March 10. Its Chapter 11 case number is 08-10446.

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