Optima Specialty Steel secures $130 million exit financing commitment

By Caroline Salls

Pittsburgh, June 27 – Optima Specialty Steel, Inc. requested court approval to enter a commitment letter under which the company would obtain an initial $115 million in exit financing, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Optima said the unitranche term loan facility will include an additional $15 million in the form of delayed-draw loans, which will be available until the earlier of Dec. 31, 2017 and the date the company enters into a revolving credit facility.

The commitment letter requires GSO Capital Partners LP, together with its affiliates and funds and accounts managed or sub-advised by them, to provide the financing.

The company said the proposed financing will provide the liquidity required to fund Chapter 11 plan transactions and ensure Optima’s emergency from bankruptcy.

Virtus Group, LP is the exit financing agent.

The facility will mature six years after the closing date.

Interest will accrue at a rate of Libor plus 875 basis points, subject to a 1% Libor floor.

The company has requested a June 29 hearing.

Optima is a Miami-based specialty steel manufacturer. The company filed bankruptcy on Dec. 15, 2016 under Chapter 11 case number 16-12789.

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