Studio Movie Grill gets interim access to $7 million of DIP loan

By Sarah Lizee

Olympia, Wash., Oct. 28 – Studio Movie Grill Holdings, LLC obtained interim access to up to $7 million of a priming secured super-priority delayed-draw term loan facility, according to an order filed Tuesday in the U.S. Bankruptcy Court for the Northern District of Texas.

The company also received court approval to use the cash collateral of the DIP agent on a limited basis.

As previously reported, the term loan facility consists of up to $22.8 million of new money commitments.

The transaction also includes a refinancing under the company’s $122.1 million prepetition credit agreement, in an amount equal to two times the new money interim DIP loans plus $2.2 million on account of obligations under the prepetition credit agreement relating to advances made in connection with a third amendment on an interim basis, and two times the DIP loan commitments minus the interim DIP loans on a final basis.

The administrative agent is Goldman Sachs Bank USA. The lenders are Goldman Sachs and affiliates of Crestline Management, LP.

Interest will be Libor plus 800 basis points, payable monthly in cash as to new money DIP loans, and payable in-kind as to the refinancing.

There is an unused commitment fee of 1%, and a 2% exit fee on new money commitments.

The facility will terminate on the earliest of 120 days after the petition date, the date on which a sale of substantially all the debtors’ assets is approved, the effective date of any plan of reorganization, entry of an order for conversion of any of the debtors’ bankruptcy cases to Chapter 7, entry of an order for the dismissal of any of the debtors’ bankruptcy cases, 30 days after the petition date if a final order has not been entered by then, appointment of a Chapter 11 trustee, or the occurrence of a post-petition default.

Proceeds will be used for working capital and other general corporate purposes.

Studio Movie Grill is a Dallas-based dine-in movie theater chain. The company filed Chapter 11 bankruptcy on Oct. 23 under case number 20-32633.

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