Friedman's receives final approval for DIP facility

By Ellen Chang

Houston, Feb. 22 - Friedman's Inc. announced it received final court approval on Feb. 18 for its $150 million in debtor-in-possession financing from a group of lenders led by Citicorp USA, Inc. and arranged by Citigroup Global Markets, Inc.

The company has agreed to use the final DIP financing facility to repay its pre-petition term loan facility, to fund payments to vendors under its pre-petition secured trade credit program, to purchase additional inventory and for general corporate purposes.

The interest rate on the DIP facility is Libor plus 250 basis points. The facility comes with a 125 basis point closing fee, 150 basis point underwriting fee, a $50,000 annual administrative agent's fee and a $50,000 annual collateral monitoring fee.

Friedman's filed for bankruptcy on Jan. 14. Its Chapter 11 case number is 05-40129.

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