Nordic Aviation secures final approval of $170 million DIP facility

By Sarah Lizee

Olympia, Wash., Feb. 3 – Nordic Aviation Capital A/S received final court approval of a $170 million debtor-in-possession facility, according to an order filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The $170 million DIP facility, from some of the company’s prepetition secured creditors, consists of the $60 million of interim term loans, and another $60 million of DIP term loans and $50 million of delayed-draw term loans that are available following Thursday’s final order.

The facility is set to mature nine months from the petition date.

Interest is Libor plus 800 basis points, subject to a 1% Libor floor.

There was an upfront fee of 3% of the principal amount of outstanding DIP commitments immediately prior to the company’s initial draw, payable in cash only from unrestricted cash.

There is also an exit premium of 2% of the principal amount of the DIP commitments.

The facility has a put option premium of 4% and an extension premium of 0.5% of the principal amount of the DIP commitments of the DIP backstop parties, payable in cash only from unrestricted cash.

There is a commitment fee on each DIP lender’s respective DIP commitment at a rate equal to 4.5% per annum on any undrawn DIP commitments.

The company also received final approval to access the cash collateral of the prepetition secured parties.

The Billund, Denmark-based aircraft leasing company filed bankruptcy on Dec. 17 under Chapter 11 case number 21-33691.

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