Boomerang Tube court allows access to $145 million of DIP financing

By Kali Hays

New York, July 24 – Boomerang Tube LLC obtained final access to $145 million in debtor-in-possession financing, according to Friday orders from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company received interim access to $40 million of the financing in early June.

The financing is comprised of a $60 million term loan and up to $85 million in revolving loans and letters of credit.

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

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 and interest on the ABL facility will be Libor plus 450 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.