ION Media Networks approved for $25 million interim DIP loan access

New York, May 21 - ION Media Networks, Inc. said it received approval for interim access to $25 million of its debtor-in-possession financing facility.

Proceeds can be used for working capital and general corporate purposes.

Authorization for the DIP access was one of the first day requests allowed by the U.S. Bankruptcy Court for the Southern District of New York.

On final approval, the DIP financing will total $300 million, to be provided by some of the company's first-lien lenders.

The DIP facility includes $150 million in new money loans and a $150 million dollar-for-dollar roll up of outstanding first-lien debt.

Wilmington Trust FSB is the administrative agent.

The DIP financing will mature on the earlier of February 2010 and the plan effective date, subject to extension to May 2010.

Interest is at Libor plus 1,200 basis points with a 3.25% Libor floor, provided, however, that the interest rate will be Libor plus 1,300 bps if the maturity extension takes effect.

ION is a West Palm Beach, Fla.-based television broadcaster. The company filed for bankruptcy on May 19. Its Chapter 11 case number is 09-13125.

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