Standard Register given final access to $155 million of DIP financing

By Kali Hays

New York, April 16 – Standard Register Co. won final authorization to obtain $155 million of debtor-in-possession financing, according to a Thursday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, 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 the 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.

On March 13, the company said the term loan would 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.

Under the term loan agreement, 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.

On March 13, the company said the ABL loan would 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.

Under the ABL loan agreement, the asset sale is required to close 30 days after entry of the sale order unless stayed, subject to a 30-day extension.

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 for bankruptcy on March 12 under Chapter 11 case number 15-10541.

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