Joann gets final approval of $142 million DIP-to-exit facility

By Sarah Lizee

Olympia, Wash., April 15 – Joann Inc. received final approval of a $142 million debtor-in-possession-to-exit facility, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The financing includes $107 million in new-money term loans, $25 million of converted trade payables into term loans and an accordion term loan facility of up to $10 million.

Wilmington Savings Fund Society, FSB is the DIP agent. The DIP financing is set to mature in 60 days and bear interest at SOFR plus 950 basis points.

The company’s prepetition term loan lenders are being offered the right to participate on a pro rata basis in the super-priority DIP-to-exit term loan facility.

Joann is a Hudson, Ohio-based retailer of fabrics and crafts. The company filed bankruptcy on March 15 under Chapter 11 case number 24-10418.

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