Meridian Automotive gets court OK for new $75 million DIP from Credit Suisse

By Caroline Salls

Pittsburgh, June 30 - Meridian Automotive Systems, Inc. obtained final approval from the U.S. Bankruptcy Court for the District of Delaware for a new $75 million debtor-in-possession financing facility from first-lien agent Credit Suisse First Boston, according to a company news release.

The CSFB DIP replaces the previously announced JPMorgan facility, which was canceled in light of necessary changes to its 2005 operating forecasts.

The Credit Suisse DIP will be a $75 million revolving credit facility, with up to $30 million available for letters of credit.

Maturity is 12 months from the closing date, with an option to extend the maturity to Oct. 31, 2006.

The unused portion fee is 50 basis points.

The interest rate and letter-of-credit fee is Libor plus 375 bps. The letter-of-credit fee also includes a 25 basis point fronting fee.

Also, the Credit Suisse facility provides for adequate protection, as $126.3 million of the $310 million outstanding under the first-lien credit agreement and first-lien swap agreement will receive superpriority administrative expense status.

In addition, first-lien secured lenders will be entitled to receive monthly all postbankruptcy interest at a rate of Libor plus 700 bps, of which 500 bps will be payable in cash and 200 bps will accrue.

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.

Meridian filed for bankruptcy on April 26. Its Chapter 11 case number is 05-11168.

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