Vertis obtains court approval of $185 million interim DIP facility

By Caroline Salls

Pittsburgh, Nov. 19 - Vertis Holdings, Inc. received interim court approval to use $185 million of its proposed $200 million in debtor-in-possession financing from GE Capital Corp., according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for Dec. 16.

The company said the DIP facility will give it the necessary financing to complete the confirmation of its plan of reorganization within 45 to 60 days and ensure that it is able to uphold its commitments to clients, employees and suppliers.

Interest will be Libor plus 250 basis points if usage under tranche A of the facility is less than 25%, interest will be Libor plus 275 bps if usage is between 25% and 75%, and interest will be Libor plus 300 bps if usage is greater than 75%.

Interest for tranche B of the facility will be Libor plus 775 bps.

The facility will mature on the earlier of six months from closing and the effective date of the company's plan of reorganization.

Baltimore-based Vertis provides print advertising and marketing services. The company filed for bankruptcy on Nov. 17, and its Chapter 11 case number is 10-16170.

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