Real Industry Bankruptcy Financing Revised


Real Industry filed with the U.S. Bankruptcy Court a notice of new proposed D.I.P. lenders and a new commitment letter.

The notice states, “After filing the DIP Financing Motion, Real Industry received an unsolicited offer for alternative postpetition financing from 210 Capital, and the Private Credit Group of Goldman Sachs Asset Management, (collectively, ‘210/GSAM’). 210/GSAM has, subject to Court approval, agreed to provide Real Industry with a postpetition credit facility (the ‘210/GSAM Proposed DIP Financing’) on terms that are either identical, or materially superior, to the terms of the GSC Proposed DIP Financing.”

In addition, “The improved terms offered by the 210/GSAM Proposed DIP Financing include, (i) an improved equity commitment (from $10 million to $17.5 million), (ii) increased availability under the proposed postpetition financing facility (from $4 million to $5.5 million), (iii) a reduced interest rate (from 12 percent to 11 percent), (iv) the addition of a commitment to provide a $500 million acquisition financing facility on terms to be negotiated, (v) a reduced upfront fee (from $300,000 to $200,000), (vi) a reduced break-up fee (from $450,000 to $300,000), and (vii) relaxed case milestones.”

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