Bluestem Brands gets interim access to $74 million of DIP financing

By Caroline Salls

Pittsburgh, March 10 – Bluestem Brands, Inc. obtained court approval to access $74 million of a proposed $125 million of post-bankruptcy financing on an interim basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for March 31.

The interim financing is comprised of $25 million in term loans and $49 million in revolving loans.

The company said the financing will provide the liquidity necessary to operate its business while it pursues a value-maximizing transaction.

Cerberus Business Financing, LLC is the administrative agent.

The DIP financing will mature on the earliest of 35 days following entry of the interim order if a final order has not been entered, six months from the bankruptcy filing date, the effective date of a Chapter 11 plan, completion of a sale of the company’s assets and/or capital stock and termination of the commitments by the administrative agent.

Interest will accrue at the Base rate plus 500 basis points or Libor plus 600 bps, at the company’s election.

Bluestem is an Eden Prairie, Minn.-based online retailer of a broad selection of name brand and private label general merchandise. The company filed bankruptcy on March 9 under Chapter 11 case number 20-10566.

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