True Religion gains full access to $60 million DIP financing

New York, Aug. 2 – True Religion Apparel, Inc. received final court approval to access its $60 million debtor-in-possession financing from Citizens Bank NA, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.

The approval was given at a hearing on Tuesday.

True Religion previously received interim access to $35 million of the loan.

As previously reported, the facility will mature on the earliest of the plan effective date, the closing of a sale of the company’s assets, the date of written notice of acceleration of the DIP facility obligations and Dec. 1.

Interest will be calculated based on excess availability, with interest on Libor loans ranging from Libor plus 250 basis points to Libor plus 300 bps, and interest on Base rate loans ranging from Base rate plus 150 bps to Base rate plus 200 bps.

True Religion, a Vernon, Calif.-based jeans and jeans-related sportswear company, filed bankruptcy on July 5. The Chapter 11 case number is 17-11460.

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