Vicorp seeks approval of $9 million additional DIP financing

By Caroline Salls

Pittsburgh, Sept. 25 - Vicorp Restaurants, Inc. requested court approval obtain an additional $9 million in debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company's current DIP facility includes a $25 million revolving line of credit and a $35 million term loan A.

According to the motion, the company has secured a commitment for a $6 million new term loan B from Fidelity National Special Opportunities, Inc.

VI Acquisition Corp. will guarantee the $6 million term loan B.

Interest will be Libor plus 1,500 basis points.

The term loan B will be used to pay down $1.5 million of the term loan A and $4.5 million of the revolver, which will free up availability for the company's working capital needs.

The other $3 million in additional financing will come through an amendment to the current DIP facility that will increase the existing borrowing base.

Under the amendment to the existing facility, the interest rate during a liquidity period or if an event of default occurs will be 9%. Interest will be 5.5% after the amendment effective date if no event of default occurs during the liquidity period.

Vicorp will pay a $100,000 amendment fee, which will constitute an advance under the revolver. The company will also pay a transaction fee of 200 bps of principal or $120,000 in connection with the new term loan.

Vicorp, a Denver-based restaurant operator, filed for bankruptcy on April 3. Its Chapter 11 case number is 08-10623.

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