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WorldStrides gets interim approval of financing; final hearing Aug. 6
By Caroline Salls
Pittsburgh, July 28 – Lakeland Tours, LLC, which does business as WorldStrides, obtained court approval to access $367.8 million in debtor-in-possession financing on an interim basis, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.
The final hearing is scheduled for Aug. 6.
Under WorldStrides’ recapitalization agreement, some of the consenting lenders and the company’s sponsors will provide a DIP financing facility, comprised of up to $108 million in new-money term loans provided by the DIP lenders and up to $108 million in new-money term loans provided by the sponsors, the “roll-up” into the DIP facility of $150 million of loan claims held by the DIP lenders and the “roll-over” of existing letters of credit in a face amount of $1.8 million.
The DIP financing will mature on the earliest to occur of six months from the bankruptcy filing date, conversion or dismissal of the Chapter 11 cases, a sale of substantially all company assets, acceleration of the loans and the plan effective date.
The lender and sponsor loans will accrue interest at Libor plus 1,200 basis points with a 1.25% Libor floor. DIP roll-up loans will accrue interest at Libor plus 150 bps payable in cash, subject to a 1.25% Libor floor and 1,050 bps paid in-kind.
A 3% commitment premium will be payable to all DIP lenders and the sponsors, and a 5% backstop premium will be paid to a backstop group and the sponsors.
WorldStrides is a Charlottesville, Va.-based provider of educational student travel. The company filed bankruptcy on July 20 under Chapter 11 case number 20-11647.
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