Neenah Enterprises gets commitments for $160 million of exit financing

By Caroline Salls

Pittsburgh, July 2 - Neenah Enterprises, Inc. has secured financial commitments to fund its emergence from bankruptcy, according to a company news release.

According to court documents, the exit financing is comprised of a four-year $100 million senior secured revolving credit facility from Bank of America, NA and General Electric Capital Corp. and a 54-month $60 million term loan facility from GoldenTree Asset Management LP and MacKay Shields LLC.

Interest on the revolver will be Libor plus 375 basis points, subject to quarterly adjustment based on the company's average access availability.

If the excess availability is greater than or equal to $35,000, the rate will be Libor plus 350 bps, if it is greater than or equal to $15 million but less than $35 million, the rate will be Libor plus 375 bps, and if it is less than $15 million, the rate will be Libor plus 400 bps.

Interest on the term loan will be Libor plus 900 bps, with a 2% Libor floor.

As previously reported, the company's plan of reorganization confirmation hearing is scheduled for July 6. Neenah said it expects to close on the financing and emerge from bankruptcy about two weeks later.

Upon emergence, the company said it will have successfully reduced its debt by more than $270 million.

In connection with its exit from bankruptcy, Neenah said it will transition to a new executive management team. Richard D. Caruso, a managing director for Huron Consulting Services, LLC, will serve as acting chief executive officer, and Brent E. Johnson of Huron will serve as acting chief financial officer.

Caruso has served as Neenah's chief restructuring officer since it filed for bankruptcy in February.

Korn Ferry International has been hired to help the company find permanent successors to Caruso and Johnson, who will replace current president and CEO Robert E. Ostendorf Jr. and current CFO Dale E. Parker.

In addition, former Neenah CEO William Barrett will serve as a special adviser to the board of directors and CEO.

Neenah, a Neenah, Wis.-based manufacturer and marketer of iron castings and steel forgings, filed for bankruptcy on Feb. 3 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-10360.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.