Motorsport Aftermarket wins approval of $135 million DIP loan

By Caroline Salls

Pittsburgh, Dec. 13 – Motorsport Aftermarket Group, Inc. obtained court approval to access $135 million in debtor-in-possession financing on a final basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The DIP financing is comprised of a $110 million senior secured super-priority asset-based revolving credit facility provided by Wells Fargo Bank, NA as administrative agent and collateral agent and a $25 million senior secured super-priority term loan facility provided by Wilmington Trust, NA as administrative agent and collateral agent.

The ABL facility will mature on the earliest of nine months from the bankruptcy filing date, the effective date of the company’s proposed Chapter 11 plan and the date of termination of the restructuring support agreement.

The term loan facility will mature on the earliest of the stated maturity date, the closing of any sale not consented to by the requisite lenders, the effective date of a Chapter 11 plan, the appointment of a trustee or examiner for the bankruptcy cases, conversion or the Chapter 11 cases or the date of an acceleration of the obligations.

Interest on the DIP revolver will accrue at Libor plus 500 basis points or the Base rate plus 400 bps. The DIP term loan facility will accrue interest at a rate of 12%.

Motorsport Aftermarket is a Coppell, Texas-based independent manufacturer and distributor of branded aftermarket products and online retailer for the powersports industry. The company filed bankruptcy on Nov. 15 under Chapter 11 case number 17-12442.

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