High Ridge Brands secures interim access to $25 million in financing

By Caroline Salls

Pittsburgh, Dec. 19 – High Ridge Brands Co. obtained court approval to access $25 million of a proposed $40 million in debtor-in-possession financing on an interim basis, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Jan. 15.

In conjunction with its sale process, High Ridge Brands said it received a commitment for $20 million in new-money DIP financing from its existing secured lender group. The total $40 million DIP financing package also includes a $20 million roll-up of pre-bankruptcy financing.

The DIP facility will mature four months from the bankruptcy filing date.

Interest will accrue at the Base rate plus 600 basis points or Libor plus 700 bps.

High Ridge said the new financing, combined with cash generated from ongoing operations, will be used to support the business throughout the sales process. The company said it has sufficient liquidity to meet its go-forward business obligations.

High Ridge is a Stamford, Conn.-based personal care products company. The company filed bankruptcy on Dec. 18 under Chapter 11 case number 19-12689.

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