Republic Engineered obtains approval for DIP, will hire investment banker

By Carlise Newman

Chicago, Oct. 10 - Republic Engineered Products LLC has secured U.S. Bankruptcy Court approval for its debtor-in-possession financing agreement.

In conjunction with the financing agreement, Republic plans to hire an investment banker by mid-October to help market the company to investors.

The DIP is $194.25 million in size of which $149.95 million will be used to repay a portion of the company's prepetition revolver and up to $45 million is available for new loans.

Fleet Capital Corp is the agent for the new lending group, which includes banks from the prior group: Bank of America, JP Morgan, Wells Fargo Foothill Inc. and GE Capital CFE Inc.

On Thursday Republic filed a motion to obtain the $194.25 million DIP. The revolver bears interest at Libor plus 350 basis points, has a $20 million sublimit for letters of credit and a $10 million sublimit for swingline loans.

The Akron, Ohio-based steel supplier filed for bankruptcy protection Oct. 6 in the U.S. Bankruptcy Court for the Northern District of Ohio.

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