Momentive court gives final approval on $570 million DIP financing

By Kali Hays

New York, May 23 - Momentive Performance Materials, Inc. received final approval of its proposed $570 million debtor-in-possession financing, according to a Friday order with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the financing is led by J.P. Morgan Securities LLC as lead arranger and consists of a $300 million term loan and a $270 million ABL revolver that will be convertible to an exit facility at the company's option.

Upon filing for bankruptcy, the company said this financing, combined with cash generated by its ongoing operations, will be available to meet its operational and restructuring needs.

The DIP loans will mature on the earlier of 12 months from the bankruptcy filing date and the effective date of a plan of reorganization.

Interest will be Libor plus 275 basis points or Base rate plus 175 bps, at the borrower's option.

The company received interim access to $430 million of the financing, including $130 million of the ABL loans and $300 million of the term loans.

Momentive is a silicones and advanced materials company based in Albany, N.Y. The Chapter 11 case number is 14-22503.

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