WCI Communities obtains commitment for $150 million DIP facility

By Caroline Salls

Pittsburgh, Aug. 22 - WCI Communities, Inc. requested court approval to enter into a $150 million debtor-in-possession financing arrangement, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Wachovia Bank is the administrative agent.

The DIP facility is comprised of an $80 million term loan and a $70 million revolving credit facility.

The loan will mature on the earlier of the first anniversary of the closing date and the effective date of a plan of reorganization.

The maturity can be extended to 18 months after the closing date if WCI delivers financial forecasts through March 31, 2010, files a draft plan of reorganization and related disclosure statement acceptable to the lenders and if no event of default or breach of the appraised ratio value occurs.

Interest will be either Base rate plus 500 basis points or Libor plus 600 bps, subject to a 300 bps Libor floor, at the company's option.

Proceeds will be used to repay the company's Tower debt in full, as well as for working capital and general corporate purposes.

The company will pay a commitment fee of 1% of the unused DIP revolver commitments and a 6% fee on the outstanding face amount of each letter of credit.

A hearing is scheduled for Sept. 23.

WCI, a Bonita Springs, Fla.-based homebuilding and real estate services company, filed for bankruptcy on Aug. 4. Its Chapter 11 case number is 08-11643.

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