Lumileds emerges from bankruptcy with $1.4 billion debt reduction

By Sarah Lizee

Olympia, Wash., Oct. 31 – Lumileds Holding BV emerged from Chapter 11 bankruptcy with its funded debt reduced by $1.4 billion, according to a Monday press release.

With the restructuring transaction completed, Lumileds will be owned by a new group of long-term institutional investors, including Anchorage Capital Group, LLC, Nut Tree Capital Management, LP and Cerberus Capital Management, LP.

The company said Steve Barlow has been appointed chief executive officer.

As previously reported, the U.S. Bankruptcy Court for the Southern District of New York confirmed the company’s pre-packaged Chapter 11 plan on Oct. 14.

Lumileds entered into a restructuring support agreement with lenders of a majority of the outstanding loans under its prepetition first-lien debt facility and the plan sponsors.

Under the terms of the RSA, the existing secured lenders agreed to support a transaction that would reduce the company’s funded debt from about $1.7 billion to $300 million, comprised of takeback debt and post-petition loans that were converted into a $300 million five-year exit facility bearing interest at SOFR plus 800 basis points and maturing on Oct. 31, 2027.

Deutsche Bank AG New York Branch is the agent on the exit facility.

A majority of the company’s lenders and future sponsors participated in the company’s $275 million debtor-in-possession financing, which was syndicated following approval by the court as part of the company’s first-day motions.

Under the plan, holders of first-lien loan claims were to receive their pro rata share of 100% of the equity in the reorganized debtors and the exit term loans.

General unsecured claims were to be paid in full or otherwise remain unimpaired.

Other secured claims, other priority claims, intercompany claims and intercompany interests are unimpaired.

Holders of subordinated claims, existing interests in Luminescence Cooperatief UA and existing co-investment interests in Aegletes BV are impaired.

Lumileds, based in San Jose, Calif., develops, manufactures and distributes light-emitting diode (LED) devices, light bulbs and related products for automotive, general and specialty lighting. The company filed bankruptcy on Aug. 29 under Chapter 11 case number 22-11155.

© 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.