School Specialty DIP loans amended; $10 million made available sooner

By Caroline Salls

Pittsburgh, April 18 - School Specialty, Inc. executed amendments to its senior secured debtor-in-possession credit agreement with U.S. Bank NA and asset-based DIP credit agreement with administrative agent Wells Fargo Capital Finance, LLC, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The senior DIP loan amendment sets a new schedule of milestones based on revisions to the schedule of hearings related to the company's bankruptcy case and authorizes up to $10 million in additional borrowings as early as April 25, instead of May dates specified in the original agreement.

The amendment to the Wells Fargo loan sets a new schedule of milestones based on hearing schedule changes and attaches a revised budget to the credit agreement.

Wells Fargo is also the co-collateral agent, co-lead arranger and joint bookrunner on the asset-based loan, GE Capital Markets, Inc. is the co-collateral agent, co-lead arranger and joint bookrunner and syndication agent and General Electric Capital Corp. is a syndication agent.

School Specialty, a Greenville, Wis.-based education company, filed for bankruptcy on Jan. 28 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 13-10125.

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