Bluestem Brands gets final approval of $125 million in DIP financing

By Caroline Salls

Pittsburgh, May 19 – Bluestem Brands, Inc. obtained final court approval to access $125 million of post-bankruptcy financing, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

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 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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