Klausner Lumber Two gets $2.1 million of additional DIP financing

By Sarah Lizee

Olympia, Wash., Dec. 10 – Klausner Lumber Two, LLC secured court approval of an amendment to its $3.4 million senior secured super-priority term loan that increases the size by $2.1 million, according to an order filed Thursday in the U.S. Bankruptcy Court for the District of Delaware.

The company said in its motion that without the cash infusion, it will be put at risk of not being able to successfully implement a sale of its assets that should generate a minimum of $33.3 million.

Legalist DIP SPV I, LP is the lender on the DIP loan, as previously reported.

Interest is the sum of 10.75% and the greater of the Prime rate and 4%.

There is a $96,250 commitment fee and a $61,250 underwriting fee, each payable on the maturity date, as well as a 4.75% undrawn line fee and a 3% make-whole fee.

The facility will mature, at the latest, 550 days after entry of the DIP order.

Klausner Lumber Two is an Enfield, N.C., sawmill and lumber company. The company filed bankruptcy on June 10, 2020 under Chapter 11 case number 20-11518.

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