Vicorp granted interim access to $17.5 million of DIP facility

By Jennifer Lanning Drey

Portland, Ore., April 4 - Vicorp Restaurants Inc. and parent VI Acquisition Corp. were granted interim access to $17.5 million of its proposed $60 million debtor-in-possession financing, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The hearing for final approval is scheduled for April 22.

Wells Fargo Foothill, Inc. is the arranger and administrative agent. Ableco Finance LLC is also named as a DIP facility lender.

Interest will be either Base rate plus 550 basis points or Libor plus 750 bps, with a 300 bps floor, at the borrower's option.

The DIP financing will mature on the earliest of one year from entry of the interim order, 45 days after the interim order if a final order has not been entered, upon the sale of substantially all company assets and the effective date of a plan of reorganization.

Vicorp will pay a $500,000 closing fee.

Vicorp also received court approval on Friday to continue paying employee salaries, wages and benefits as normal and to honor customer programs and policies, according to a company news release.

The company's financial adviser is Piper Jaffray & Co.

Vicorp is a Denver-based restaurant operator. Its Chapter 11 case number is 08-10623.

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