Signal International gets interim access to $2.5 million of DIP loan

By Caroline Salls

Pittsburgh, July 14 – Signal International, Inc. obtained interim court approval to use $2.5 million of a proposed $90.09 million of debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Aug. 12.

As previously reported, the Teachers’ Retirement System of Alabama and the Employees’ Retirement System of Alabama are the DIP financing lenders.

The DIP facility is comprised of up to $15 million in revolving credit to be used for general working capital and liquidity purposes and for the payment of administrative expenses, up to $5 million in revolving credit to be used for credit enhancement obligations under customer contracts and up to $70.09 million to be used for repayment of first-lien credit agreement debt.

The facility will mature on the earliest of Nov. 24, the date the lender elects to terminate the availability period and accelerate the obligations and the closing date of the company’s asset sale.

The interest rate will be 8¼%.

Signal International, a Mobile, Ala.-based marine construction firm, filed bankruptcy on July 12. The Chapter 11 case number is 15-11498.

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