SP Newsprint seeks court approval to obtain $25 million DIP facility

By Caroline Salls

Pittsburgh, Dec. 15 - SP Newsprint Holdings LLC requested court approval to obtain up to $25 million of debtor-in-possession financing, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

General Electric Capital Corp. is the agent.

SP Newsprint said the DIP loan will give it working capital to operate in Chapter 11 and preserve the value of its business while it conducts a going-concern sale process.

The facility will mature on the earliest of 180 days after closing, the effective date of any plan of reorganization for the company and closing of an asset sale.

Interest will be Base rate plus 650 basis points for Base rate loans and Eurodollar plus 750 bps for Eurodollar loans.

The company is seeking interim access to $12 million of the DIP financing.

A Dec. 16 hearing has been requested.

SP Newsprint, a Greenwich, Conn.-based newsprint producer, filed for bankruptcy on Nov. 15. The Chapter 11 case number is 11-13649.

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