Optim Energy $115 million DIP loan granted final approval by court

By Kali Hays

New York, March 6 - Optim Energy, LLC's $115 million debtor-in-possession financing agreement with ultimate parent company Cascade Investment, LLC was approved, according to a Thursday order with the U.S. Bankruptcy Court for the District of Delaware.

Optim filed for the DIP financing to continue effectively operating is business.

As previously reported, the DIP financing will come from a new-money, revolving, priming senior secured credit facility, including a $56 million letter-of-credit subfacility to replace existing letters of credit or provide credit support for critical vendors and a $25 million letter-of-credit subfacility to support the hedging and trading of safe-harbored energy contracts.

Interest will be Libor plus 500 basis points on both drawn amounts and letters of credit.

The facility will mature on the earliest of 12 months after the bankruptcy filing date or 15 months if an extension option is exercised, the effective date of a plan of reorganization and acceleration of the facility.

The agreement also requires Optim to give Cascade a draft plan of reorganization and disclosure statement or a proposal for the sale of its equity or assets within six months of the bankruptcy filing date.

It also must reach a stalking horse agreement for its Twin Oaks facility or substantially all of the facilities assets within 90 days and receive court approval of the sale within 150 days.

Optim, a Silver Spring, Md-based power plant owner, filed for bankruptcy on Feb. 12. The Chapter 11 case number is 14-10262.

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