Sirva receives interim access to $100 million of DIP financing

By Caroline Salls

Pittsburgh, Feb. 6 - Sirva, Inc. was granted interim access to $100 million of its $150 million debtor-in-possession facility, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final DIP hearing is scheduled for Feb. 25.

JPMorgan Chase Bank, NA is the administrative agent on the DIP facility, and J.P. Morgan Securities, Inc. is the lead arranger and bookrunner.

The DIP facility can be converted into a $215 million senior secured exit facility, with $130 million available for letters of credit.

DIP proceeds will be used to repay the company's pre-bankruptcy senior secured loans and to fund working capital and general corporate needs.

The DIP facility will include an $85 million revolving credit facility, with up to $60 million available for letters of credit, and a $65 million term loan.

The DIP facility will mature on the earlier of June 30 and 30 days after entry of the interim DIP order if a final order has not been entered.

Interest will be either Base rate plus 550 basis points or Libor plus 650 bps, at Sirva's option.

Upon conversion of the DIP facility to an exit facility, Sirva will pay a conversion fee of 25% of the common stock of the reorganized company.

In addition, Sirva will pay an upfront fee equal to 2% of the total DIP commitment, plus 1% of $42.31 million backstopped under an incremental commitment letter. Sirva will also pay a $250,000 per year agency fee.

Sirva, a Westmont, Ill.-based relocation services provider, filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 08-10375.

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