Mark IV Industries requests court OK of $90 million DIP facility

By Caroline Salls

Pittsburgh, May 1 - Mark IV Industries, Inc. requested court approval of a $90 million debtor-in-possession facility from a group of lenders led by JPMorgan Chase Bank, NA, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The financing will be used to fund post-bankruptcy operating expenses and to meet the company's obligations to employees, customers and suppliers.

Of the $90 million total commitment, $25 million will go to U.S. term loans on an interim basis and an additional $10 million on a final basis, $25 million will go toward a Canadian non-debtor foreign commitment and $30 million will go toward an Italian non-debtor foreign commitment.

The facility will mature on May 4, 2010.

Interest on Base rate loans will be Base rate plus 400 basis points. Interest on U.S. and Canadian Eurocurrency term loans will be the Eurocurrency rate plus 500 bps, and interest on Italian term loans will be the Eurocurrency rate plus 350 bps.

The company will pay a $175,000 administration fee, as well as 10% commitment fees on the U.S. and Canadian loans and a 13% commitment fee on the Italian loan.

Mark IV, an Amherst, N.Y., manufacturer of engineered systems and components for the automotive, industrial and transportations markets, filed for bankruptcy on April 30. Its Chapter 11 case number is 09-12795.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.