American Commercial Lines $690 million DIP financing package approved

By Caroline Salls

Pittsburgh, March 5 – American Commercial Lines Inc. received final court approval to obtain $690 million in debtor-in-possession financing, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

The financing package, which is being provided by some of ACL’s existing lenders, consists of a $640 million asset-based loan and a $50 million term loan.

The company said the new financing and cash generated from ongoing operations will be used to pay off its existing asset-based facility and to support the business during the court-supervised process.

Wells Fargo Capital Finance, LLC is the administrative agent for the ABL facility, and Cortland Capital Market Services, LLC is the administrative agent for the term loan.

The DIP financing will mature in six months.

The ABL facility will accrue interest at the Base rate plus 350 basis points or Libor plus 450 bps, and the term loan at the adjusted Base rate plus 600 bps or Libor plus 700 bps, with a 2% Libor floor.

American Commercial, a portfolio company of Platinum Equity, is a Jeffersonville, Ind.-based marine transportation service company. The company filed bankruptcy on Feb. 7 under Chapter 11 case number 20-30982.

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