Optima Specialty Steel granted access to $40 million of DIP financing

By Caroline Salls

Pittsburgh, Jan. 24 – Optima Specialty Steel, Inc. received approval from the U.S. Bankruptcy Court for the District of Delaware to enter into an immediate debtor-in-possession credit facility providing up to $40 million of interim borrowing capacity, according to a company news release.

The final hearing on the company’s request for a total of $211.7 million in financing is scheduled for Feb. 28.

“The DIP financing combined with OSS’s operating cash flow provides a solid financial foundation from which the company will continue to operate and provide its customers with quality products and services during our reorganization,” chief executive officer Motti Korf said in the release.

“Moreover, the agreement to provide DIP financing demonstrates that our lenders have confidence in our ability to emerge from Chapter 11 as a viable company.”

Optima Acquisitions, LLC is the DIP lender.

Interest on the facility will accrue at a rate of Libor plus 550 basis points with a 1% Libor floor.

The DIP financing will mature on June 15, 2018.

Optima is a Miami-based specialty steel manufacturer. The company filed bankruptcy on Dec. 15 under Chapter 11 case number 16-12789.

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