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J & M Sales – Court Approves $57 Million of Interim DIP Financing

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August 8, 2018 – J & M Sales received interim Court authority for $57 million of post-petition Debtor in Possession (“DIP”) financing [Docket No. 17]. The interim order authorizes the Debtors, prior to the entry of a final order, to request extensions of credit under the DIP facility up to an aggregate principal amount of $57 million. As previously reported, “The D.I.P. Lenders are Encina Business Credit SPV; Israel Discount Bank of New York; and Midcap Financial Trust. The D.I.P. Agent is Encina Business Credit. The L/C Issuer is Israel Discount Bank of New York….The total commitment for the DIP Facility is $100,000,000….For each LIBOR Rate Loan made by DIP Agent it shall bear interest equal to 7.75% per annum (at least 0.25%) plus Applicable Margin (7.5%)). For each LIBOR Rate Loan made by Israel Discount Bank of New York it shall bear interest equal to 5% per annum (at least 0.25%) plus Applicable Margin (4.75%)). For each Base Rate Loan made by DIP Agent it shall bear interest equal to 7.5% per annum (at least 1%) plus Applicable Margin (6.5%)). For each Base Rate Loan made by Israel Discount Bank of New York it shall bear interest equal to 4.25% per annum (at least 1%) plus Applicable Margin (3.25%)).” The Court scheduled a final hearing on August 28, 2018, with objections due by August 22, 2018.

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