Standard Register gets interim access to $155 million of DIP financing

By Caroline Salls

Pittsburgh, March 13 – The Standard Register Co. received interim court approval to obtain $155 million of debtor-in-possession financing, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for April 1.

The facility includes a $30 million term loan, with Silver Point Finance, LLC as the administrative agent, and a $125 million ABL loan, with Bank of America, NA as the agent.

The term loan will accrue interest at either the Base rate plus 850 basis points or Libor plus 950 bps with a 1% Libor floor. Interest on the ABL loan will be Base rate plus 125 bps, provided that Standard Register can elect an interest rate of Libor plus 225 bps on draws of at least $3 million.

The term loan will mature on the earliest of Sept. 8, 30 days after entry of the interim order if a final order has not been entered, March 31 if the company has not provided a draft operational restructuring plan to the agent, April 10 if the asset sale procedures have not been approved, April 15 if a final restructuring plan has not been provided to the agent, June 19 if the asset sale has not been approved by the court, the sale closing date, the effective date of a Chapter 11 plan and the date of acceleration of the loans.

The asset sale must close on the earlier of 60 days after entry of the sale order unless stayed or failure by the winning bidder to close except as a result of a breach by the company and 180 days after the date of the purchase agreement.

The ABL loan will mature on the earliest of Sept. 8, 30 days after entry of the interim order if a final order has not been entered, April 10 if the asset sale procedures have not been approved, June 19 if the asset sale has not been approved by the court, the sale closing date, the effective date of a Chapter 11 plan, the date of conversion or dismissal of the Chapter 11 cases and the date of acceleration of the loans.

The ABL loan requires the asset sale to close 30 days after entry of the sale order unless stayed, subject to a 30-day extension.

Filing defaults

According to an 8-K filed with the Securities and Exchange Commission, Standard Register’s Chapter 11 bankruptcy filing constituted an event of default under the company’s debt instruments, including $115.4 million of principal and interest outstanding on its first-lien credit agreement and $98.6 million of principal and interest outstanding on its second-lien credit facility.

However, any efforts to enforce the repayment obligations are stayed under the Bankruptcy Code.

Director resigns

In addition, Standard Register said Roy W. Begley Jr. resigned from the company’s board of directors on March 10.

At the time of his resignation, Begley was a member of the compensation, corporate governance and nominating committees, the 8-K said.

Standard Register is a Dayton, Ohio-based provider of business documents and related services for the health care, financial services, commercial and industrial markets. The company filed bankruptcy on March 12 under Chapter 11 case number 15-10541.

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