Quiksilver approved for interim access to $115 million of DIP facility

New York, Sept. 10 – Quiksilver, Inc. received approval for interim access to $115 million of its debtor-in-possession financing facility, according to a news release.

The U.S. Bankruptcy Court for the District of Delaware also set a date of Oct. 6 for the hearing on the company’s plan sponsorship agreement with Oaktree Capital Management, LP.

Approval of access to the DIP facility was part of a series of approvals of first day motions by the company.

Originally the company had intended to seek interim access to $70 million of the DIP financing.

The full amount of the DIP facility is $175 million. It is being provided by affiliates of Oaktree and Bank of America, NA.

The company said the financing, in addition to other existing sources of liquidity, will be “more than sufficient” to fund its ongoing operations.

The facility is comprised of a $115 million term loan, which will mature 150 days from the bankruptcy filing date and accrue interest at 12%, as well as a $60 million ABL facility, which will mature 150 days from the filing date and accrue interest at Libor plus 350 basis points or the Base rate plus 250 bps.

Quiksilver filed for Chapter 11 on Wednesday.

The company noted that its European bondholders have agreed that the Chapter 11 filing will not affect their debt.

Quiksilver is an outdoor sports lifestyle company based in Huntington Beach, Calif. The Chapter 11 case number is 15-11880.

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