Tower receives OK for $125 million interim access to DIP facility, Silver Point back stop

New York, Feb. 4 - Tower Automotive, Inc. received interim approval for its debtor-in-possession financing facility, giving it access to $125 million of the $725 million commitment.

A hearing on final approval is scheduled for Feb. 28.

The DIP facility is via JPMorgan.

The DIP runs for two years and, when fully approved, will include $300 million in a revolving credit facility and a $425 million term loan.

The interest rate is Libor plus 275 basis points for the revolver and Libor plus 375 basis points for the term loan.

There is a 50 basis point fee on the unused amount.

Tower will also pay an upfront fee of 1.50%.

The court also approved a back-stop commitment from Silver Point Finance, LLC for the pre-bankruptcy second-lien loans.

Silver Point is offering to buy the loans of any second-lien lenders that no longer wish to participate at par plus accrued interest. Silver Point will receive a $5.425 million structuring fee.

Tower filed for Chapter 11 Tuesday in the U.S. Bankruptcy Court for the Southern District of New York. Its case number is 05-10578.

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