Sea Launch seeks OK of $30 million DIP loan to repay old facility

By Caroline Salls

Pittsburgh, April 23 - Sea Launch Co., LLC requested court approval to obtain $30 million of debtor-in-possession financing from Energia Overseas Ltd. (Russia), according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said Energia Overseas is one of its equity holders and is an entity related to S.P. Korolev Rocket & Space Corp.

As previously reported, Sea Launch received court approval in March to receive the remaining $12 million of a previous DIP facility from Space Launch Services, LLC.

However, the company said in Thursday's motion that the lender has refused to fund $6 million of that DIP commitment because Sea Launch allegedly failed to meet one or more funding conditions.

As a result, the company said it secured the new DIP facility to pay off $12.5 million under the first DIP loan, as well as $3 million to pay off an additional borrowing and $3 million to pay off the first draw on the amended version of the original facility.

The new loan also includes $9.5 million in incremental liquidity and a $2 million original issue discount.

The facility will mature on the earliest of six months from closing, subject to one optional three-month extension; the earlier of the effective date of a plan of reorganization or 30 days after entry of a confirmation hearing if the effective date has not occurred; upon approval of a sale of any of Sea Launch's material assets; conversion or dismissal of the bankruptcy case; and 45 days after the motion if a final order has not been entered.

Interest will be Libor plus 750 basis points, provided that it will increase to Libor plus 850 bps during the optional extension period.

A hearing is scheduled for Tuesday.

Sea Launch, a Long Beach, Calif., heavy-lift satellite commercial launch service provider, filed for bankruptcy on June 22, 2009. Its Chapter 11 case number is 09-12153.

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