Washington Prime Group gets access to $50 million of DIP facility

By Sarah Lizee

Olympia, Wash., June 15 – Washington Prime Group Inc. received court approval to access $50 million of a $100 million new money debtor-in-possession facility, according to an interim order filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company has entered into a restructuring support agreement with creditors, led by SVPGlobal, that hold about 73% of the company’s secured corporate debt and 67% of its unsecured notes.

Washington Prime secured the financing from the consenting creditors to support day-to-day operations during the Chapter 11 process and ensure that all business operations continue in the ordinary course without interruption.

The DIP loan has just one financial maintenance covenant, requiring the maintenance of a minimum liquidity of $25 million.

The facility will mature in six months, with an option to extend the maturity to 12 months.

Interest is Libor plus 425 basis points.

Washington Prime also received interim court approval to access the cash collateral of its pre-petition secured lenders.

The real estate investment trust is based in Columbus, Ohio. The company filed bankruptcy on June 13 under Chapter 11 case number 21-31948.

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