Big M granted final access to $13.2 million DIP financing facility

By Jim Witters

Wilmington, Del., Jan. 24 - Big M, Inc. received final approval for access to $13.2 million in debtor-in-possession financing during a Thursday hearing in the U.S. Bankruptcy Court for the District of New Jersey, according to company attorney Kenneth A. Rosen.

The financing from Salus Capital Partners, LLC includes a $10 million senior secured revolver and a $3.2 million term loan.

Interest on the revolver will be Base rate plus 575 basis points. Interest on the term loan will be 8%.

The loan will mature on the earliest of 270 days after closing, upon written notice of an event of default and the company's emergence from Chapter 11.

The DIP agreement requires the company to file a sale motion or a plan of reorganization under which the lender would be paid in full within 180 days of the bankruptcy filing date.

Big M, a New Jersey-based women's clothing chain owner, filed for bankruptcy on Jan. 7. Its Chapter 11 case number is 13-10233.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.