Boomerang Tube interim DIP financing approved; final hearing July 10

By Caroline Salls

Pittsburgh, June 11 – Boomerang Tube LLC was granted interim access to a portion of a proposed $145 million in debtor-in-possession financing, according to orders filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for July 10.

As previously reported, the DIP financing is comprised of a $60 million term loan and additional access to up to $85 million in revolving loans and letters of credit.

Under the term loan order, the company will have interim access to $40 million, with $35 million available now as interim financing and $5 million to be borrowed as subsequent financing.

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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