Oglebay Norton DIP priced at Libor plus 400 basis points

By Sara Rosenberg

New York, Feb. 24 - Oglebay Norton Co.'s proposed $75 million revolving debtor-in-possession financing facility is priced with an interest rate of Libor plus 400 basis points and a 50 basis points commitment fee, according to a court document.

Silver Point Finance LLC and General Electric Capital Corp. are the co-lead arrangers with General Electric also acting as the administrative agent and Silver Point also acting as the collateral agent and syndication agent.

The DIP contains a $20 million letter-of-credit subfacility.

Proceeds from the DIP would be used for working capital requirements.

Oglebay Norton filed for Chapter 11 with the U.S. Bankruptcy Court for the District of Delaware on Monday.

Just before filing for Chapter 11, the company said it had reached an agreement in principle with the majority of the senior subordinated noteholders to exchange their notes for equity. Furthermore, the company said it has made substantial progress toward obtaining a new credit facility that would retire its existing bank debt.

Oglebay Norton is a Cleveland industrial minerals and aggregates company.

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