Hollander gets final approval to access $28 million of DIP financing

By Caroline Salls

Pittsburgh, July 23 – Hollander Sleep Products, LLC gained final court approval to access up to $28 million of debtor-in-possession term loan financing, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Barings Finance LLC is the administrative agent.

The term loan will accrue interest at the Base rate plus 600 basis points or Libor plus 700 bps.

The facility is scheduled to mature 150 days after Hollander’s bankruptcy filing date.

As previously reported, the company’s financing package includes $28 million of incremental new money and an additional $30 million of committed exit financing to support a full range of business improvement initiatives once the company exits from bankruptcy.

Both the new money DIP financing and the exit financing were provided by a group of the company’s existing term lenders.

These funds and Hollander’s cash from operations are expected to provide ample liquidity during the Chapter 11 process to maintain normal operations, the company said.

The Boca Raton, Fla.-based company designs, manufactures and markets utility bedding products. It filed for Chapter 11 bankruptcy on May 19. The case number is 19-11608.

© 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.