SFX Entertainment granted interim approval of reduced DIP facility

By Caroline Salls

Pittsburgh, Feb. 10 – SFX Entertainment, Inc. received interim court approval to access an amended debtor-in-possession facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company originally received a commitment for up to $115 million in DIP financing from a bondholder group.

The original facility included $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.

However, the amended facility provides for a total of $87.6 million in DIP financing, comprised of $30 million in tranche A loans and $57.6 million in tranche B loans.

The amended interim order authorizes SFX to use $30 million of tranche A loans and $13 million of tranche B loans.

The final hearing is scheduled for March 4.

Wilmington Savings Fund Society, FSB is the administrative agent.

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, 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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