Output Services gets interim approval of $50 million DIP facility

By Sarah Lizee

Olympia, Wash., Oct. 17 – Output Services Group, Inc. received interim approval of a $50 million debtor-in-possession facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company has reached an agreement with its first-lien lenders, mezzanine lenders and preferred and common equity holders to significantly reduce its debt and annual interest expenses.

The company’s pre-packaged Chapter 11 plan is centered on the agreement.

As part of the agreement, the $50 million DIP facility will convert to a new loan at emergence.

Acquiom Agency Services LLC and Seaport Loan Products LLC are co-administrative agents.

The facility is set to mature in 91 days and bear interest at SOFR plus a SOFR term adjustment of 11.448 basis points, plus a margin of 800 bps, subject to a SOFR floor of 3.5%.

A final hearing on the DIP financing is scheduled for Nov. 21.

Output Services is a provider of billing and payment solutions based in Carol Stream, Ill. The company filed bankruptcy on Oct. 15 under Chapter 11 case number 23-90799.

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