Sea Containers $170 million DIP facility approved; $145 million slated for subsidiary loan repayment

By Caroline Salls

Pittsburgh, July 5 - Sea Containers Ltd. obtained court approval of a $170 million debtor-in-possession facility, $145 million of which will be used to repay wholly owned subsidiary Sea Containers SPC Ltd.'s credit facility, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Sea Containers will use the other $25 million of the DIP facility for general corporate purposes.

The original commitment called for an up to $151.5 million term loan for repayment of the Sea Containers SPC loan and a $25 million revolving credit facility. However, the company and the lenders said they were still negotiating the final terms of the DIP facility when the motion was filed.

Specifically, the repayment of the Sea Containers SPC securitization facility will be made through a series of transfers. Sea Containers will use the term loan to make a capital contribution to SPC Holdings Ltd., which will in turn make a capital contribution to wholly owned subsidiary Sea Containers SPC.

The lenders are Mariner LCD and Dune Capital LP. Wells Fargo Bank NA is the administrative agent and collateral agent.

The DIP facility will mature on the earliest of two years after closing, upon the effective date of a plan of reorganization, upon acceleration of the DIP facility, upon the sale of substantially all company assets and upon the conversion of Sea Containers' Chapter 11 case to Chapter 7 or appointment of an examiner or trustee.

Interest on the term loan will be Eurodollar rate plus 350 basis points, and the interest on the revolver will be Eurodollar rate plus 400 bps.

Sea Containers will pay a commitment fee of 1% of the average daily unused portion of the revolver.

Sea Containers, a Hamilton, Bermuda-based provider of passenger and freight transport and marine container leasing, filed for bankruptcy on Oct. 15, 2006. Its Chapter 11 case number is 06-11156.

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