Centric Brands secures final OK to use $435 million of DIP financing

By Caroline Salls

Pittsburgh, June 23 – Centric Brands Inc. obtained final court approval to access $435 million in debtor-in-possession financing, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the DIP financing will enable it to continue to meet its financial obligations throughout the bankruptcy process to employees, licensors, suppliers and vendors.

The DIP financing is comprised of a $160 million term loan and a $275 million revolving credit facility.

U.S. Bank NA is the agent for the one-year term loan, which will accrue interest at the Base rate plus 750 basis points. ACF FINCO I LP is the agent for the one-year revolver, which will accrue interest at the Base rate plus 550 bps.

New York-based Centric Brands is a lifestyle brand collective that designs, sources, markets and sells kids, men’s and women’s apparel, accessories, beauty and entertainment products. The company filed bankruptcy on May 18 under Chapter 11 case number 20-22637.

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