hhgregg filed with the U.S. Bankruptcy Court a motion for interim and final orders authorizing the Debtors to obtain post-petition financing, granting liens and super-priority claims to post-petition lenders, authorizing the use of cash collateral and providing adequate protection to pre-petition secured parties and modifying automatic stay and scheduling a final hearing.
The motion explains, “The DIP Facility consists of (i) a $50,000,000 senior secured superpriority revolving credit facility (the commitments thereunder, the ‘Revolving Commitments’ and the loans thereunder, the ‘Revolving Loans’) and (ii) a $30,000,000 senior secured superpriority ‘first-in, last-out’ term loan facility (the loans thereunder, the ‘FILO Loans’). The Revolving Commitments include a $25,000,000 sublimit for the issuance of letters of credit (each a ‘Letter of Credit’). Subject to the entry of the Interim Order (as defined below), all letters of credit issued and outstanding under the Prepetition Credit Agreement shall be deemed to be issued under the DIP Facility….The interest rates per annum applicable to the Revolving Loans under the DIP Facility will be (a) the Base Rate plus (b) 3.00%. The interest rates per annum applicable to the FILO Loans under the DIP Facility will be one-month LIBOR (as a reference rate, adjusted monthly) plus 10.00%.”
The Court subsequently granted interim approval and scheduled a March 31, 2017 final hearing on the financing motion.
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