SFX Entertainment gets interim OK to use $80 million of DIP financing

By Caroline Salls

Pittsburgh, Feb. 3 – SFX Entertainment, Inc. received interim court approval to access $80 million of a proposed up to $115 million in debtor-in-possession financing from a bondholder group, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for March 4.

Wilmington Savings Fund Society, FSB is the administrative agent.

The company said the financing will be used to pay ongoing business obligations and includes $30 million in tranche A term loans and $85 million in tranche B term loans, with an option to request an additional $10 million in tranche B loans.

The interim financing includes $30 million of tranche A loans and $50 million of tranche B loans.

Interest on the tranche A loans will be 12%, and interest on the tranche B loans will be 10%.

The facility will mature on Jan. 31, 2017.

SFX said the DIP financing will be converted to an exit facility upon its emergence from Chapter 11.

SFX, a New York-based producer of live events and entertainment content, filed bankruptcy on Feb. 1. The Chapter 11 case number is 16-10238.

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