Hobbico obtains final court approval of $79.1 million in DIP financing

By Caroline Salls

Pittsburgh, Feb. 14 – Hobbico, Inc. obtained final court approval of a $71.9 million debtor-in-possession facility, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the financing consists of up to $45 million in revolving loans and a $26.9 million term loan.

Wells Fargo Bank, NA is the administrative assistant.

The DIP financing will mature on May 31, or earlier if a termination event occurs.

Interest on the revolving loans will accrue at the Base rate plus 475 basis points, and interest on the term loans will accrue at the Base rate plus 775 bps.

Hobbico is a Champaign, Ill.-based designer, manufacturer and distributor of radio control and general hobby products. The company filed bankruptcy on Jan. 10 under Chapter 11 case number 18-10055.

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