Sbarro gets final court OK to access its $35 million DIP loan

By Lisa Kerner

Charlotte, N.C., May 3 - Sbarro, Inc. received final court approval to access its proposed $35 million debtor-in-possession financing, according to an attorney familiar with the case on Tuesday.

The court granted Sbarro interim access to $16.5 million of the financing in early April.

As previously reported, the DIP financing is being provided by some of the banks, financial institutions and other lenders under Sbarro's pre-bankruptcy first-lien facility.

The DIP agent is Cantor Fitzgerald Securities.

The facility will mature in six months from closing, but the maturity may be extended for an additional three months upon satisfaction of certain conditions.

Interest will be either Libor plus 7% with a Libor floor of 1.75% or Base rate plus 6%, at Sbarro's election.

Sbarro will pay a 0.75% fee on the unused portion of the outstanding term loan commitments under the DIP facility.

Sbarro, a Melville, N.Y.-based quick-service Italian restaurant chain, filed for bankruptcy on April 4. The Chapter 11 case number is 11-11002.

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