Cal Dive eyes court approval to obtain $120 million of DIP financing

By Caroline Salls

Pittsburgh, March 4 – Cal Dive International, Inc. requested court approval to obtain up to $120 million in debtor-in-possession financing from current first-lien lenders led by Bank of America, NA, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company said the DIP financing will immediately provide additional liquidity to continue its operations during the Chapter 11 process.

The $120 million facility amount is comprised of a $20.2 million senior revolving credit facility and a $99.8 million subordinated term facility. The revolver will have a $5 million sublimit for letters of credit.

According to the DIP loan motion, the proceeds of the term facility will be used to repay in full the outstanding principal obligations under Cal Dive’s pre-bankruptcy senior revolver.

Interest will accrue at the Base rate plus 625 basis points with a 2.75% Base rate floor.

The facility will mature on Jan. 31, 2016.

The interim DIP financing hearing is scheduled for March 5.

Cal Dive, a Houston-based marine contractor providing services to the offshore oil and natural gas industry, filed for bankruptcy on March 3. The Chapter 11 case number is 15-10458.

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