Chassix gets access to $205 million in DIP funds; customer deals OK’d

By Kali Hays

New York, March 13 – Chassix Holdings, Inc. received interim authorization to access $205 million of a combined $250 million debtor-in-possession facility and to use the cash collateral of its pre-bankruptcy lender, according to a Friday order from the U.S. Bankruptcy Court for the Southern District of New York

As previously reported, the total DIP financing is in the form of a $150 million asset-based loan from PNC Bank that will replace its current ABL facility and an incremental $100 million of liquidity in a term loan provided by some of the company’s bondholders.

The initial draw on the ABL loan will be $125 million, and the initial draw on the term loan will be $80 million.

Interest on the ABL facility will be either Base rate plus 125 basis points or Libor plus 225 bps. Interest on the term loan will be either Base rate plus 800 bps or Libor plus 900 bps with a 1% Libor floor.

The ABL facility will mature on the earlier of Dec. 31, 2015 and the effective date of a plan of reorganization. The term loan will mature on the earliest of nine months from the date of the interim order, the acceleration of the loans, 30 days after entry of the interim order if a final order has not been entered and the plan effective date.

Chassix said this financing, combined with cash generated by ongoing operations, will be available to the company to meet its operational and restructuring needs.

Under a separate interim order, the company also received approval of accommodation agreements with creditors including General Motors LLC, Ford Motor Co. Chrysler Group LLC, Nissan North America, Inc., BMW Manufacturing Co. LLC, along with PNC Bank, NA as Chassix’s revolving DIP agent and Cantor Fitzgerald Securities as agent for the term-loan DIP facility.

The company’s proposed restructuring plan incorporates these customer agreements along with a global settlement with its existing equity sponsor Platinum Equity Customers and an informal committee of noteholders.

A final hearing on the DIP loans and the accommodation agreements is set for April 7.

Chassix, a Southfield, Mich.-based manufacturer and supplier of aluminum and iron chassis sub-frame components, including steering knuckles, control arms, sub-frames and assemblies, filed for bankruptcy on March 12. The Chapter 11 case number is 15-10578.

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