Wickes gets court approval for $100 million DIP

By Sara Rosenberg

New York, Jan. 22 - Wickes Inc. received preliminary consent from the bankruptcy court to enter into a $100 million debtor-in-possession financing agreement. Merrill Lynch Capital is the agent, collateral agent, book manager and lead arranger on the DIP.

The facility consists of a $77.625 million revolver with an interest rate of Libor plus 325 basis points and an unused commitment fee of 50 basis points, and a $22.375 million term loan with an interest rate of Libor plus 400 basis points, according to court documents.

The term loan amortizes at $400,000 on Sept. 30, 2004, $400,000 on Dec. 31, 2004 and $21.575 million on Jan. 21, 2005.

Proceeds will be used to pay transaction fees and expenses for the DIP, refinance prepetition obligations and for general corporate purposes.

Wickes is a Vernon Hills, Ill., distributor of building materials and manufacturer of building components.

The company filed for Chapter 11 on Jan. 20.

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