Boomerang Tube given emergency access to Wells Fargo cash collateral

By Kali Hays

New York, June 10 – Boomerang Tube, LLC received interim authorization to use the cash collateral of its pre-bankruptcy lender Well Fargo Capital Finance, LLC under a Wednesday emergency order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company is seeking approval of a $145 million debtor-in-possession loan comprised of a $60 million term loan and additional access to up to $85 million in revolving loans and letters of credit.

The administrative agent for the term facility is Cortland Capital Market Services LLC, and the administrative agent for the ABL facility is Wells Fargo Capital.

The term DIP facility will mature on the earliest of 120 days after the bankruptcy filing date, closing of a sale of all or substantially all of the company’s assets or the effective date of a plan. The ABL DIP facility will mature on the earliest of 150 days after the bankruptcy filing date, closing of a sale or the plan effective date.

Interest on the term facility will accrue at Libor plus 1,000 basis points or Base rate plus 1,000 bps, and interest on the ABL facility will be Libor plus 450 bps or Base rate plus 250 bps.

Boomerang Tube is a St. Louis-based producer of oil country tubular goods and line pipe that filed for bankruptcy on June 9. The Chapter 11 case number is 15-11247.

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