New World Pasta plans $45 million DIP facility at prime plus 400 bps

By Jeff Pines

Washington, May 11 - New World Pasta Co.'s proposed $45 million debtor-in-possession credit facility will come with an interest rate of prime rate plus 400 basis points, according to a filing late Monday with the U.S. Bankruptcy Court for the Middle District of Pennsylvania.

If approved, the commitment fee will be 100 basis points of the average unused portion of the facility for each calendar month in which the principal balance is $22.5 million or less. For months where the principal balance is greater than $22.5 million, there will be 75 basis point unused portion fee.

The company wants interim access to $20 million of the facility.

If the facility gets final approval, the maturity date will be the effective date of the reorganization plan.

The company also is seeking approval to use cash collateral.

Black Diamond Commercial Finance LLC is the agent for the group of lenders.

The Harrisburg, Pa.-based pasta maker filed for bankruptcy Monday. Its Chapter 11 case number is 04-2817.

© 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.