Wellman receives interim access to $225 million DIP facility

By Caroline Salls

Pittsburgh, Feb. 28 - Wellman Inc. was granted interim access to its $225 million in debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for April 1.

Deutsche Bank Securities is the lead arranger and bookrunner, and Deutsche Bank Trust Co. Americas is the administrative agent and collateral agent.

The $225 million DIP commitment includes a $40 million letter-of-credit subfacility.

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

Interest will be either Libor plus 275 basis points or Base rate plus 175 bps, at the borrower's option.

The company will pay a fee of 1.25% of each lender's commitment, a closing fee of 0.5% of the maximum amount of the loan and a fee equal to 0.375% times the daily average unused portion of the facility.

Wellman will also pay a 275 bps standby letter-of-credit fee.

The proceeds of the DIP financing, combined with cash from operations, will be used to fund the company's post-bankruptcy operating expenses, including payments to employees and suppliers, the release said.

Wellman, a Fort Mill, S.C., polyester products manufacturer, filed for bankruptcy on Feb. 22. Its Chapter 11 case number is 08-10595.

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