Muzak secures commitment for $108.75 million of exit financing

By Caroline Salls

Pittsburgh, Dec. 2 - Muzak Holdings LLC has received a commitment from GE Capital, Restructuring Finance, Silver Point Finance, LLC and MFC Global Investment Management to provide a $108.75 million senior secured exit facility, according to a company news release.

The exit financing will be used to satisfy the claims of the company's pre-bankruptcy senior secured lenders under its plan of reorganization as well as to fund working capital and other general corporate purposes.

"Securing exit financing helps us clear one of the last major hurdles in our path to emergence from Chapter 11," Muzak chief executive officer Stephen P. Villa said in the release.

The commitment is subject to bankruptcy court approval, and the financing is subject to the satisfaction of customary closing conditions, including confirmation of the company's plan and execution and delivery of definitive documentation.

The plan confirmation hearing is scheduled for Jan. 12.

Muzak, a Fort Mill, S.C.-based recorded music company, filed for bankruptcy on Feb. 10, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10422.

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