Meridian Automotive $375 million DIP may launch next week

By Sara Rosenberg

New York, April 28 - Meridian Automotive Systems Inc. may hold a bank meeting some time next week to launch its proposed $375 million debtor-in-possession financing facility, according to a market source. JPMorgan is the lead bank on the deal.

The DIP is expected to consist of up to a $175 million revolving tranche A with an interest rate of Libor plus 250 basis points and a $200 million term loan B with an interest rate of Libor plus 350 basis points.

Maturity will be the earliest of 18 months from the date of filing, 45 days after the entry of the interim DIP if the final DIP order has not been made, confirmation of a plan of reorganization or the acceleration of the loans in accordance with the DIP agreement.

The revolver will be repaid first, followed by the term loan.

Proceeds will be used to repay the company's first-lien debt.

Meridian is a Dearborn, Mich., supplier of front and rear end modules, lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers.

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