Stearns Holdings granted final approval of $35 million DIP facility

By Caroline Salls

Pittsburgh, Aug. 2 – Stearns Holdings, LLC obtained final court approval to access $35 million in debtor-in-possession financing, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, plan sponsor Blackstone Capital Partners has pledged to provide the DIP financing, which, combined with cash generated from ongoing operations, will be available as needed to support the business during the court-supervised restructuring process.

The facility will mature six months from the bankruptcy filing date and will accrue interest at a rate of 10%.

As previously reported, Stearns also secured commitments of $1.5 billion from its warehouse providers for repurchase agreement facilities. Blackstone will provide warehouse lenders with a limited first-loss guarantee.

Stearns is a Santa Ana, Calif.-based independent mortgage origination and servicing company. The company filed bankruptcy on July 9 under Chapter 11 case number 19-12226.

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